Firm managing NC’s Helene recovery is set to be barred from government contracts in WV

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by Galen Bacharier, West Virginia Watch
August 7, 2025

Horne LLP, the company tapped to manage homebuilding and recovery from Hurricane Helene in western North Carolina, is facing a ban on government contract work in West Virginia.

State officials informed the Mississippi-based firm on July 22 that they were pursuing debarment, or permanently banning the company from participating in government contracts, according to a letter obtained by NC Newsline.

The notice from West Virginia comes four months after Horne settled litigation with the federal government, in which prosecutors alleged that the company created fictitious applicant information and filed fraudulent invoices as they managed federal disaster recovery grants.

Horne has denied any wrongdoing in the case, and settled for $1.2 million.

Samantha Willis, who leads West Virginia’s purchasing agency, wrote to Horne executives in the letter that the state had found “probable cause” to debar the company. She cited a press release from the federal prosecutor’s office about the settlement.

“The details uncovered during the investigation show clear and convincing evidence of a ‘wanton indifference’ to the interests of the public,” Willis wrote, “which caused serious harm to the public through the wasting of key disaster recovery resources through improper billing, or at least, a substantial likelihood of causing serious harm through the misuse of funds and delay in recovery for the communities involved.”

A spokesperson for Horne said in a statement that the company “strongly disagreed” with the notice and was preparing a formal response.

“The notice appears to rely solely on a press release related to a prior settlement, which itself contained no admission of wrongdoing and presented a one-sided characterization of events,” communications director Meg Annison said. “This reliance is not only legally insufficient — it is fundamentally unjust.”

“West Virginia law is clear: Debarment must be based on specific, substantiated grounds such as convictions for fraud, felony offenses related to public contracting, or other serious misconduct,” Annison continued. “None of these apply in our case. The settlement was reached voluntarily and without any finding of liability. It was a pragmatic resolution, not an acknowledgment of fault.”

Horne’s lawyers are in discussions with West Virginia officials and have “raised concerns about the timing and basis of this action,” she added. The company has 30 days since the letter was issued to submit their response.

“We are confident that once the full context is reviewed — including the terms of the settlement and our continued service to West Virginia agencies — the notice will be withdrawn,” Annison said.

West Virginia’s Department of Administration did not respond to requests for comment.

The West Virginia case dates to 2016, when Horne was contracted to manage federal disaster block grant money. Almost a decade later, North Carolina has tasked them with overseeing a recovery program funded with $1.4 billion from the same pool of federal money.

Horne had briefed North Carolina officials on the possibility of debarment in West Virginia, said a spokesperson for the NC Department of Commerce, which awarded the Helene recovery contract.

“The action has no effect on the company’s eligibility under a federal program like HUD’s (community development block grant disaster funds), and we do not expect it to have any effect on our current contract with Horne,” communications director David Rhoades said.

An inspector general’s report, previously reported by NC Newsline, said that the U.S. Department of Housing & Urban Development “will not pursue suspension or debarment action” against Horne. It was among the materials cited by a North Carolina-based firm that also bid on the contract and unsuccessfully protested Horne’s winning bid.

An attorney for Horne and North Carolina officials have pointed out that report does not contain official findings or recommendations from the inspector general’s office.

The company’s North Carolina contract came under scrutiny from state lawmakers shortly after it was awarded. Republican legislators remain wary of Horne’s involvement in prior hurricane recovery efforts that were defined for years by accounting errors and dysfunction. But both the company and state officials have said that the state agency ReBuild NC, not Horne, was directly responsible for those problems.

Renew NC, the state’s home repair and rebuild program, is now accepting applicants for single-family housing. Multiple offices throughout western North Carolina are open, and the state has thus far received more than 800 applications.

West Virginia Watch is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. West Virginia Watch maintains editorial independence. Contact Editor Leann Ray for questions: info@westvirginiawatch.com.

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