The report of forensic auditor Mark Hulse is supposed to be finished in a week's time. But already his 165 page draft is informing the commission's work. But tonight, one of the principal players in the DFC probe has made a serious allegation of professional misconduct against Hulse. David Novelo, whose family got the largest loan in DFC history, $30 million in a day, has taken serious issue with Hulse. What's his gripe? Jules Vasquez got a look at it.
Jules Vasquez Reporting,
David Novelo - the man who was waiting to testify last week Friday but never got his turn says Forensic Auditor Mark Hulse has a major undisclosed conflict of interest. He makes his case in this letter delivered to the commissioners this afternoon. In supporting documents to the letter - he shows that Hulse had served as part of the Novelo's management team put in place by the receiver. This leads Novelo to conclude that in doing a forensic review of the Novelo's
transaction he has quote, "audited himself".
But in his letter to the Commission, Novelo argues that it's more than just an academic observation, it undermines the audit. In his letter, Novelo says that what he calls a lack of objectivity on Hulse's part has led him to a faulty assessment of the Novelo's loan. But in a statement to 7NEWS, Hulse says he was not the receiver, he worked with the receivership for a month to introduce a cash control system, and after that he was out.
So is there something to the Novelo complaint - or is he just throwing in a spoiler? That's the question that's perplexing the co-chairs tonight. Commissioner Bailey-Martinez could not comment today because she had not discussed it with her co-chair. It is expected that Novelo will be called to testify. After being postponed this week, the hearings will resume next week Wednesday, and continue on Tuesday 20th February. What's the reason for the delay? A statement from the commission says it is to deal with legal concerns raised by counsel. Still left to testify are Troy Gabb, Glenn Godfrey and Ralph Fonseca.
