Donohue leaving HUD IG post

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After more than eight years on the job, Kenneth Donohue is stepping down Oct. 1 as inspector general for the Housing and Urban Development Department for a position with the Reznick Group, P.C., a national accounting firm, according to news releases from his office and the company.

Donohue will be a principal in Reznick’s government services group, where he will focus on compliance, internal controls and other matters for the company’s federal, state and local clients.

A former Secret Service special agent appointed by then-President George W. Bush, Donohue has served as inspector general since March 2002. Among other milestones during his tenure, his office singled out the I.G.’s work in auditing the reconstruction of the World Trade Center site following the 9/11 attacks,  its participation in the investigation of the space shuttle Challenger disaster and Donohue’s early warnings of the brewing mortgage crisis. The inspector general’s office also participated in “Operation Stolen Dreams,” an investigation of mortgage fraud that, as of June, had resulted in more than $147 million in recoveries, according to the FBI.

President Obama will name Donohue’s replacement.

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