CLEVELAND (WJW) – Federal agents executed a search warrant at the home of a prominent Cleveland real estate developer and restaurant owner. The Department of Housing and Urban Development is accusing CEO Frank Sinito of mismanaging funds at some of his properties.

Frank Sinto’s company, Millennia Companies, owns public housing across the country, as well as Key Tower, the tallest building in Ohio, and many high-end restaurants in Cleveland like Marble Room, Il Venetian and LockKeepers.

On Wednesday, members of HUD and the U.S. Department of Agriculture searched Sinito’s property.

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According to HUD letters, they recently barred Sinito and his company from entering into new contracts until the end of 2028. They sent a first letter in December and a second confirming this in March. In the letters, he said Sinito was accused of inappropriate conduct, citing unauthorized transfers and underfunded escrow accounts. It claims nearly $4.9 million is missing or improperly taken from 19 properties insured or subsidized by HUD.

Millenia is one of the largest owners of multifamily apartments in the United States, with a portfolio of more than 31,000 units across 26 states.

In a statement sent to FOX 8, Sinito’s attorney, Marisa Darden of Benesch Law, said:

“It’s important to remember that an investigation is just that. There have been no arrests and no charges filed. Millennia Housing Development and Mr. Sinito are cooperating with the investigation and have no further comment at this time.

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There’s a lawsuit against Sinito’s company. In Arkansas, there was an apartment explosion in 2022 in one of its buildings that killed three people. The tenants filed a lawsuit, claiming that Millennia Companies failed to adequately maintain their properties and failed to provide safe and livable living for its tenants.

FOX 8 has reached out to local authorities for more details on Wednesday’s raid.

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