Subject: RE:Notification
received and further
information requested
Attachment:
Message:
Thank you for sharing your concerns. We are sorry you do not feel comfortable providing further details at this time.
Should that change, please feel free to continue to utilize this system to provide any additional information available to
you.
Be assured we are taking this matter very seriously. As we look into this matter further, we may contact you through this
system to obtain further information or clarification. Please be aware that a lack of postings on this system does not
indicate a lack of progress on this matter. Thank you again for utilizing this system.
Original Message:
Reporter at 5/2/2012 9:48 PM wrote:
I have no desire to upstage HFHI's auditors by googling things for them. Nor do I wish to wake up with a horse head
in my bed. As I said earlier, nearly all of what I know has come from putting together different bits of information, most of
which are publicly available on the internet. I will not hide my disappointment that HFHI, with their many traunches of
auditors, has never been able to divine what is basically an open secret among the NYC affilate's staff. The same woman
who was sent to re-educate our staff in time management came to the conclusion that a once-a-month pizza party would
help boost our abysmal morale. And if that didn't work, targeting problematic employees who asked too many questions,
firing them or forcing them to quit, might prove just as useful. This is another example of the new culture at Habitat for
Humanity. I'm sure there are individuals and affiliates that embrace poor people and babies and puppies, but International
has grown increasingly corporate over the last several years (as has the NYC affiliate). And I share the concern of a
number of staffers who feel that the mother ship repeatedly refused to probe any further because to alienate our affiliate
would be the corporate fundraising version of defecating where one eats. Protecting the brand is protecting its good name
-- and also its financial viability. Do you want me to think you really believe it was merely gross oversight that no one up
or down the chain put up a red flag when our affiliate began using millions of dollars in federal money to buy properties
from someone who did not actually own them in his own right until moments before our own closings with him, even
thought a simple google search of "Isaac Katz" and "real estate" produces a bounty of web pages and records implicating
him in a mortgage fraud scandal in 2006? Habitat-NYC's Director Real Estate and Construction speaks openly about
making deals with developers, saying that we can not buy buildings from them until they get rid of all their tenants. We are
spending federal money to throw low-income New Yorkers out of buildings, then sell the apartments back to them, with a
number of people in the middle making a bundle. You can understand why I would have not only no faith in the work of
HFHI's own auditors, but would also be incredibly skeptical of any desire they might express to uncover fraud, theft,
laundering, etc. I am happy to try to answer specific questions to the best of my ability, to confirm or deny specific
informational items, to try to help you flesh out details. But I have absolutely no interest in doing your homework for you,
nor for helping you to unintentionally set me up so someone who stands to lose millions might knock in my knee caps.

Original Message:
Your Organization at 5/2/2012 5:00 PM wrote:
Thanks for providing further context around your concerns. As you may know, there are a number of different types of
‘audits’ performed by HFHI related to grant compliance, etc. However, please be aware that this hotline and follow-up
around issues reported through this venue are managed directly by the investigations team within the HFHI Internal Audit
Department (“IAD”).
HFHI IAD is an independent group reporting directly to the HFHI Audit Committee. HFHI IAD does perform periodic
audits of internal controls safeguarding financial and operational transactions. Our last audit of HFH NYC took place in
April 2010. As the NSP2 agreement was signed in June 2010, transactions related to stimulus funds received under that
umbrella could not have been covered during the scope of the last audit.
As we do take very seriously any issues raised that could have a potentially negative impact on the Habitat brand, we are
interested in gaining more information around this situation. While we will definitely be looking into the public records
you mention, as you have the more firsthand knowledge of the situation, it would be most helpful if you could provide
examples of the timing and nature of interactions with individuals you reference and any specific financial or real estate
transactions.

 Thanks and best,
Sarah McMaster
Investigations Manager, HFHI Internal Audit Department
+1 404-420-6719
smcmaster@habitat.org

Original Message:
Reporter at 5/2/2012 1:32 PM wrote:
I was initially under the impression that my concerns would be received by a third party outside of HFHI. Please
forgive my saying this, but having worked with HFHI for almost five years, I have observed extremely wide ranges in
competency. We just had an education course taught by a woman from HFHI, and one of her time management
suggestions was to only check email twice a day. This was worth her salary, her flight to New York City, and the cost of
her hotel room, etc. When staff members pointed out that our supervisors would balk, she simply said that they should
understand. My repeated impression of her is that she is either a simpleton or someone who is assertively incompetent for
the job. This experience, sadly, was not an outlier as far as HFHI employees go.
We have had HFHI auditors visit our affiliate on a regular basis. They are flown in and put up in hotels and offered a per
diem for food. Then they spend several days going through god knows what files and documents, and have never once
noted (to my knowledge) that there appeared to be anything fishy going on. They also only speak with the higher-ups,
never talking to the support staff, who can barely breathe within the affiliates toxic environment. Not that they would spill,
as they don't trust HFHI and know that anything they say will be repeated to senior management, who will then respond
punitively. I know this for a fact. Do you work with these people? Are these people part of your team? Do you supervise
the people who are supposed to be auditing our affiliate? Have you never noticed anything odd?
Almost all my knowledge of suspected wrong-doing comes from internet searches and from examining public documents.
These resources are readily available to anyone, including internal auditors for HFHI. Habitat-NYC wrote up duediligence memos which were examined by lawyers and approved by our board. But no one seemed to notice that the deed
for the first property we purchased belonged to a family that had lived there since the 70s. No one seemed to notice that
the individual from which we were buying the property did not in fact own that property, even thought this was public
record. And, to my knowledge, none of HFHI's internal auditors blinked an eye at this, nor did they suggest we cease
buying more properties from this same individual in the future. And we have continued allow him to flip property,
expelling existing tenants, selling us building at double the cost of what he paid. We do not employ contractors from the
neighborhood, the borough, or even the city. They travel from New Jersey. And their bills often come in well over their
estimated bid, which was dollars more than the lowest bidder at the time of the bidding process. And does no one really
give a crap that we are writing press releases about buying buildings that were less than two years ago owned by a fake
charity that was used to funnel money by someone presently under federal indictment for fraud?
I apologize for sounding so aggressive, but if HFHI has layers upon layers of auditors, it should not need any message
from a lowly employee to cause it to raise an eyebrow. Please tell me that someone on your team has already noticed
things that things are awry.
If this is the first your team is hearing of these things, then talking to me will do you little good. I do not have any inside
information. I have simply connected some dots, dots available to anyone with an internet connection. I've used google
and nyc.gov's property information search. I would suggest you do as much before asking any employee, past or present,
for further information.
If you tell me that you are already inspecting possible wrong-doing by Habitat-NYC, I will be happy to speak with you
further.

Original Message:
Your Organization at 5/2/2012 11:35 AM wrote:
I definitely understand your concerns. By way of introduction, my name is Sarah McMaster and I am part of the HFHI
investigations team, which is a special subgroup with the HFHI Internal Audit Department. As part of our duties, my team
is responsible for monitoring and follow-up on issues that come through this MySafeworkplace (“MSWP”) hotline. To
explain the MSWP system to you a little further, the tool can be either used for confidential or completely anonymous

 reporting. Reports are initially received only by the HFHI Internal Audit Department and then, as necessary, may be shared
with a very restricted group of individuals only on a need-to-know basis.
In a situation such as this, we do not forward the specific report directly to the staff of the affiliate but, to follow-up
effectively on the issue, we may need to contact the affiliate in the future to obtain further information. However please be
assured that we do make every reasonable effort to protect the confidentiality of reporters using this system and that we
take very seriously any issues raised through this venue that could have a potentially negative impact on the Habitat brand.
All that being said, for my team to take effective next steps, it would be most helpful if you could provide examples of the
timing and nature Bill Bogdon’s interactions with the individuals you reference (Isaac Katz, Eliayhu Weinstein, and Lo
Magno) and, more specifically, their joint involvement any particular financial or real estate transactions.
We very much appreciate your communications around this matter and look forward to hearing from you further.
Thanks and best,
Sarah McMaster
Investigations Manager, HFHI Internal Audit Department
+1 404-420-6719
smcmaster@habitat.org

Original Message:
Reporter at 5/2/2012 10:50 AM wrote:
I think I would like to remain as anonymous as possible. I did not completely understand how this system worked, and I
fear even the viewing of my complaint by members of my former organization would reveal who I am and would cause
me to be vulnerable. I realize the allegations I have made are serious, and I do not want to put myself or any of my loved
ones at risk.
Can you tell me if communications with you are relayed to the affiliate concerned?

Original Message:
Your Organization at 5/2/2012 10:42 AM wrote:
Thank you for making a report to MySafeWorkplace. This is a message to let you know we have received your complaint
and are taking the matter very seriously. To obtain a full understanding of the situation, it would be very helpful if you
could provide further details. Ideally we would like to set up a time to discuss the matter further with you. If you are
comfortable with this approach, please feel free to reach out to me personally at the contact information provided below.
If you would be more comfortable remaining anonymous, please feel free to use this forum to share further information.
Providing specific examples of the timing, frequency and nature of any improprieties is the best way to equip HFHI to take
effective next steps.
Thank you again for utilizing this system and looking forward to hearing from you.
Best,
Sarah McMaster
HFHI Internal Audit Department
+1 404-420-6719
smcmaster@habitat.org