ROANOKE TIMES 
                      Copyright (c) 1996, Roanoke Times

DATE: Wednesday, April 17, 1996              TAG: 9604170050
SECTION: VIRGINIA                 PAGE: C-3  EDITION: METRO 
DATELINE: WYTHEVILLE

HOUSING AGENCY DIRECTOR FIRED AFTER GUILTY PLEA

The Wytheville Redevelopment Housing Authority fired its executive director, Clara Whitt, Tuesday because of her legal problems.

Whitt, who served as director since 1973, pleaded guilty Monday in U.S. District Court in Roanoke to conspiring to make false statements to the U.S. Department of Housing and Urban Development, which disburses funds for low-income housing projects in Wythe County and elsewhere. She also pleaded guilty to one count of perjury.

Whitt had submitted documents to HUD that allowed a contractor on an authority project to receive more money than he was entitled to, according to U.S. Attorney Bob Crouch. The offense carries maximum penalties of 10 years in prison and $500,000 in fines. Whitt will be sentenced this year.

Whitt had indicated on a HUD form that Ridgewood Contractors Inc. deserved payment from HUD for a performance bond it had posted when, according to the prosecutor, no such bond had been posted.

The government also charged that Whitt had received gifts, including renovation work on her house, from the contractor.

In a statement, the authority said it had no previous knowledge of Whitt's legal problems and authorized an immediate audit of all accounts. Assistant Director Randy Martin was named as acting director until the post is filled permanently.

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