United States District Court, E.D. Missouri, Eastern Division
MEMORANDUM AND ORDER
D. NOCE, UNITED STATES MAGISTRATE JUDGE.
matter is before the Court on the motion of plaintiff Vinson
Mortgage Services, Inc., to hold the defendants, the
Secretary of the U.S. Department of Housing and Urban
Development and its Secretary (collectively "HUD")
in contempt, for attorney fees, and to enforce the terms of
the stay order this Court issued on January 26, 2018. (Doc.
23). The government opposes plaintiff's motion. (Doc.
29). For the following reasons, the motion is denied.
is a Missouri corporation. Its principal officers are Ray
Shawn Vinson III, plaintiff's Chief Executive Officer,
and Kevin D. Vester, plaintiff's Chief Operating Officer.
Plaintiff employs approximately sixty-five people throughout
the Midwest. By this judicial action, plaintiff seeks
judicial review of a HUD decision under the Administrative
Procedure Act, 5 U.S.C. §§ 701 et seq. The
subject matter of the action is HUD's decision to
withdraw from plaintiff its Federal Housing Administration
Title II license (“FHA license”), which decision
went into effect on January 10, 2018.
commenced this action on January 18, 2018. It immediately
moved for an emergency stay of the final agency action
pending judicial review. Defendants consented to the motion,
and on January 26, 2018, this Court issued the following stay
order in this case:
IT IS HEREBY ORDERED that the motion of plaintiff for a stay
of HUD's withdrawal of plaintiff's FHA license (Doc.
3) is GRANTED pending judicial review. Plaintiff may
participate in the Federal Housing Administration Title II
program consistent with the terms of its original approval,
including but not limited to loan underwriting, origination,
and FHA insurance endorsement, pending entry of a final
judgment in this action.
March 13, 2018, in a separate administrative proceeding
("debarment proceeding") and decision, HUD
implemented a three-year debarment of the only respondents in
the debarment proceeding, Kevin Vester and Ray Shawn Vinson.
(Doc. 23, Exs. 1 and 2). This administrative order concludes
Based on the foregoing, including the Findings of Fact,
Conclusions, and the administrative record, I [(the
"Debarring Official")] have determined, in
accordance with 2 C.F.R. §§ 180.870(b)(2)(i)
through (b)(2)(iv), to debar Respondents [(Keven Vester and
Ray Shawn Vinson III)] for three years from the date of this
Determination. Respondents' "debarment is effective
for covered transactions and contracts that are subject to
the Federal Acquisition Regulation (48 C.F.R. chapter 1),
throughout the executive branch of the Federal Government
unless an agency head or an authorized designee grants an
(Doc. 23-2 at 15).
email to plaintiff's counsel from HUD counsel, dated
March 23, 2018, counsel for HUD advised plaintiff's
counsel in this judicial action of the agency's debarment
determination against the individual respondents, Vester and
Vinson. The email stated in relevant part that the debarment
is effective immediately and precludes the respondents from
participating in any federal executive branch program,
including FHA programs, for three years. HUD counsel further
stated HUD's understanding that the respondents were the
owners and officers of plaintiff and that the
“debarments are independent of the” instant
action for judicial review. The email advised that the
“debarment determination is unaffected by the stay that
HUD agreed to regarding the withdrawal of Vinson Mortgage
Services' FHA approval.” (Doc. 23-1). The email
Vinson Mortgage Services is prohibited from participating in
the FHA program so long as Mr. Vinson or Mr. Vester retains
either an ownership interest of or employment with Vinson
Mortgage Services. 2 C.F.R. 180.130 (a debarred person cannot
participate in any covered transaction); 24 C.F.R. 202.5(j)
(a lender is ineligible if, inter alia, any officer,
director, principal, manager, or supervisor is debarred); HUD
Handbook 4000.1 I.A.3.c (“The Mortgagee must ensure
that no Corporate Officers are suspended, debarred or