FOR IMMEDIATE RELEASE                                         CIV
WEDNESDAY, MAY 17, 1995                            (202) 616-2765
                                               TDD (202) 514-1888

                                 
          UNITED STATES FILES CIVIL COMPLAINT ALLEGING 
          FRAUD AGAINST SHREVEPORT, LOUISIANA, ATTORNEY


     WASHINGTON, D.C. -- The Department of Justice has sued a
Shreveport, Louisiana, attorney who served as the closing
attorney for a number of sham real estate transactions to obtain
low-interest federal loans for properties that later went into
default, causing the United States to lose more than $750,000 in
insurance claims.   
     Assistant Attorney General Frank Hunger of the Civil
Division said the suit was filed Monday against William Robert
McKenzie in U.S. District Court in Shreveport.  
     The suit alleged that McKenzie violated the federal False
Claims Act by helping a Shreveport real estate developer, Michael
Willis, commit fraud against the Department of Housing and Urban
Development (HUD).
     According to the complaint, McKenzie prepared undated sales
deeds and signed and notarized undated cash sale deeds on 25
properties in Shreveport from 1984 through early 1985, then
submitted the false and fraudulent information to HUD.  Relying
on McKenzie's information, a HUD agency, the Federal Housing
Authority, insured lenders against losses on the mortgage loans. 
Willis then sold the properties to individuals who defaulted on
all the loans, including 12 covered by the complaint.  
     Willis was convicted in 1990 on criminal charges of making
false statements to HUD and misrepresenting material facts to a
government agency and served six months in prison.  
     In 1989, McKenzie entered a plea of nolo contendere to the
charge of knowingly making false statements to HUD with an intent
to defraud and was sentenced to five years of probation.  
     Under the False Claims Act, the United States is entitled to
recover multiple damages and civil penalties for each false claim
submitted to the government.  
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95-275