FEMA's director said Monday he was "appalled" that a FEMA contractor bought a damaged Melbourne Beach oceanfront home for hundreds of thousands of dollars below market value after last year's hurricanes.
Gary Jones came to Brevard County in October as a hazard-mitigation counselor for the Federal Emergency Management Agency. Jones found the home when its previous owner called the agency for advice on how to deal with mold damage to the house. Jones paid $250,000 for the property.
FEMA Director Mike Brown wouldn't detail exactly what his agency's rules were concerning such a deal. But in a telephone news conference with reporters Monday, he clearly was not happy with Jones' actions. "I am appalled by the actions of that one individual," Brown said.
He said he didn't want "the poor judgment of one individual to reflect poorly on the other 10,000 FEMA workers who were (in Florida)."
Federal law prohibits government employees from using their positions for private gain or using nonpublic information to further their private interest.
The hurricane-damaged house next to the one Jones bought is for sale for $1.1 million, as is. In November, before Jones closed on the house, he listed the property for resale at $700,000, according to real estate records. He later withdrew that listing.
Jones, who is a licensed real estate broker in Missouri, has said he did nothing wrong. "She set the price on the house. She wanted to sell it. I bought the house," he said.
The house Jones bought was a second home for Diana Greco, a 72-year-old Rockledge woman.
Jones had been discussing mold problems in the house with Greco. He asked her whether she would be interested in selling. She agreed and set the price of $250,000 based on an appraisal she had gotten of the land's value three years earlier. "I thought it was fair; now I guess I'm finding out otherwise," Greco said.
Jones wasn't at home when FLORIDA TODAY called Monday for his reaction to Brown's comments.
His wife did not want to take a message for her husband to call back. "I told him to get a lawyer, and he'll give you our side of the story," Paula Jones said.
Brown said the agency was examining the deal to see whether Jones broke any federal rules.
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