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Administrative Law Keyed to Koch
Darby v. Cisneros
Citation:
509 U.S. 137 (1993)Facts
Samuel Darby, a real estate developer, was involved in a HUD program that provided mortgage insurance to developers of multifamily housing projects. Following an audit, HUD’s Office of Inspector General concluded that Darby had engaged in improper financial practices, including the use of project funds for personal expenses. As a result, HUD initiated debarment proceedings against Darby. After a hearing, an Administrative Law Judge debarred Darby from participating in HUD programs for 18 months. HUD regulations permitted, but did not require, Darby to appeal the ALJ’s decision to the Secretary of HUD. Instead of pursuing this optional administrative appeal, Darby filed suit in federal district court seeking review of the ALJ’s decision under the Administrative Procedure Act.
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