New Orleans, La. – 43-year-old Elias Castellanos is accused of embezzling 900-thousand dollars when he was chief financial officer of the Housing Authority of New Orleans. Last week, the director of the Section Eight housing program for the very poor resigned amid allegations that he received that money for his own residence. Housing and Urban Development Secretary Shaun Donovan said during a recent visit to housing projects in New Orleans that the agency has been "a concern for some time." The agency is now in the process of replacing thousands of units damaged by Katrina. It is also under investigation by HUD's inspector general and the FBI.
For NPR News, I'm Eileen Fleming in New Orleans