Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-09-12
FILA Aide Who Used
Fifth Amendment
In Probe Loses Job
BY the Assoeiotsd Press

Ill TIUUE LUIGI Jul
BY the Asseeiatsd Press
The Federal Housing Admins |
tration said yesterday 1t has
fired Andrew Frost, assistant |
FILA director for New Mexi-
CO, after a special investigation
into charges he accepted favors.
including "girlie parties" from |
building contractors.
In a brief announcement Of
Mr.. Frost's removal" effective |
September Q, the FILA gave no
indication Of It's findings on the
favors charges. Mr.. Frost, in
voking the fifth amendment
against possible self-incrimina-
ton, declined to answer ques-
tions about them when he ap-
peared before the Senate Bank
ing Committee in July. q few
days after being suspended.
Mr.. Frost was not Immediately
reached for comment.
Seek "WindfalP Payment,
The FILA also announced q
showdown fight this month with
hackers Of the multimillion dol
lar Linwood Park apartment
project near Fort Lee, N. j.,
in a drive to collect the first
slice Of more than $40 million
in "windfall" profits alleged to
have been made throughout the
country on government-backed
loans, for new apartments.
Despite a threatened court
light, the agency called a meet
Ing September 20 of preferred
stockholders in Is corporations
comprising Linwood, Inc. The
announced purpose is to unseat
the present management and re-
place 1t with directors willing
to return $2,426,821 which the
government contends came from
overvalued FHA-insured mort
cages and were distributed by
the corporation as profits, in vio-
lation Of its charter. The FILA
says this Is the difference be-
tween an $8,875, 900 loan for the
project and the actual construc-
ton costs.
II recovery can be made in this
case. the FILA has said 1t will try
to reclaim most Of the other mil
lions 1t says building contractors
throughout the Nation realized
on acknowledgement loans
under the apartment construc-
ton program which expired in
1850.
The Government says the diff |
ference between the amount of
the loans and actual construc- |
ton costs was charged of in |.
higher rents, but whether the
tenants will get any money back |
Is problematical.
On Leave Since June.
Mr.. Frost, one Of the first
FILA officials suspended when
the administration and Congress
started investigating = building |
scandals" has been on leave
since June pending a review of |
alleged irregularities in his |
Office.
An FILA official since 1884, the |
43-year-old Frost became assist |
ant director for New Mexico in |
1850. When called before the !
Senate Banking Committee, he
declined to answer questions
about alleged "girlie parties"
given by building contractors.
fishing trips to Mexico, financed /
partly by the Government, and
an episode in which he allegedly
won $500 on the toss of coin.
Mr.. Frost invoked the fifth .
amendment, which protects an
individual from being required
to testify against himself, when
asked such questions as: Wheth-
er he participated in a party at
an Alamagordo motel when a
contractor supplied three girls at
cost Of between $500 and $400,
and whether this cost was
charged to the construction
project.
The accusations, on which yes
terday's FILA announcement was
silent, were investigated by Will
liam F. McKenna, deputy ad-
ministrator of the Housing and
Home Finance Agency. His staff
has probed reported abuses of
FHA's home modernization pro-
gram and the postwar apart I
ment building drive.