Investigators showed up at the offices of New Orleans Affordable Homeownership shortly before 10 a.m. Monday.

Agents from the FBI and IRS, along with HUD inspectors and the city inspector general's office spent about two hours collecting documents and other materials.

Eyewitness News saw them leave with about 20 boxes of evidence.

The U.S. Attorneys Office did not want to comment on the ongoing criminal investigation, but former U.S. Attorney Harry Rosenberg said the agents are likely following a money trail.

“They're going to be looking for financial documents, invoices, checks, correspondence that shows the day-to-day operation at NOAH, so they can have an understanding of exactly what has transpired during the activities at NOAH.”  

Federal agents served subpoenas on NOAH last week.

The troubled non-profit suspended its business and fired its workers following reports of possible wrongdoing.

The $3.6 million program was supposed to gut and clean-up homes for low income families and the elderly.

However a series of 4 Investigates reports uncovered information that contractors may have been paid for thousands of dollars of work that wasn't done. It also showed questionable ties between the agency’s former director Stacey Jackson and those contractors.

“Certainly the government is going to be looking for any fraud against the government, particularly fraud against HUD, any mail fraud, wire fraud transactions, any type of misuse of state or federal money, as well as misuse of the 501c3 status, that is the non-profit status.”

Mayor Ray Nagin, whose administration supervised NOAH, admitted there are 90 properties where no work was done. He said the city received bills for 46 of those jobs.

Rosenberg said even though there are some local investigators on the case, the feds will likely take the lead.

“Just by the mere fact that the federal government has so much more in the way of resources, I think the inspector general and perhaps others are going to at least defer to the federal government’s efforts at this stage.”

City Council members and the Mayor's Office also received subpoenas to produce documents concerning NOAH. They have until August 21 to do so.

Rosenberg said the August 21 due date is significant because that is a normal grand jury day, which could indicate that a federal grand jury may already be looking at possible criminal charges stemming from the NOAH investigation.