Thread: Mis-use of Hurricane Funds

GAO Finds Mismanagement of Hurricane Aid
By LARRY MARGASAK, Associated Press Writer
25 minutes ago

WASHINGTON - The government doled out as much as $1.4 billion in bogus assistance to victims of Hurricanes Katrina and Rita, getting hoodwinked to pay for season football tickets, a tropical vacation and even a divorce lawyer, congressional investigators have found.

Prison inmates, a supposed victim who used a New Orleans cemetery for a home address, and a person who spent 70 days at a Hawaiian hotel all were able to wrongly get taxpayer help, according to evidence that gives a new black eye to the nation's disaster relief agency.

Federal investigators even informed Congress that one man apparently used FEMA assistance money for a sex change operation.

Agents from the Government Accountability Office, the investigative arm of Congress, went undercover to expose the ease of receiving disaster expense checks from the Federal Emergency Management Agency.

The GAO concluded that as much as 16 percent of the billions of dollars in FEMA help to individuals after the two hurricanes was unwarranted.

The findings are detailed in testimony, obtained by The Associated Press, that is to be delivered at a hearing Wednesday by the House Homeland Security subcommittee on investigations.

To dramatize the problem, GAO provided lawmakers with a copy of a $2,358 U.S. Treasury check for rental assistance that an undercover agent got using a bogus address. The money was paid even after FEMA learned from its inspector that the undercover applicant did not live at the address.

"This is an assault on the American taxpayer," said Rep. Michael McCaul, R-Texas, chairman of the subcommittee that will conduct the hearing. "Prosecutors from the federal level down should be looking at prosecuting these crimes and putting the criminals who committed them in jail for a long time."

FEMA spokesman Aaron Walker said Tuesday that the agency, already criticized for a poor response to Katrina, makes its highest priority during a disaster "to get help quickly to those in desperate need of our assistance."

"Even as we put victims first, we take very seriously our responsibility to be outstanding stewards of taxpayer dollars, and we are careful to make sure that funds are distributed appropriately," he said.

FEMA said it has identified more than 1,500 cases of potential fraud after Katrina and Rita and has referred those cases to the Homeland Security inspector general. The agency said it has identified $16.8 million in improperly awarded disaster relief money and has started efforts to collect the money.

The GAO said it was 95 percent confident that improper and potentially fraudulent payments were much higher _ between $600 million and $1.4 billion.

The investigative agency said it found people lodged in hotels often were paid twice, since FEMA gave them individual rental assistance and paid hotels directly. FEMA paid California hotels $8,000 to house one individual _ the same person who received three rental assistance payments for both disasters.

In another instance, FEMA paid an individual $2,358 in rental assistance, while at the same time paying about $8,000 for the same person to stay 70 nights at more than $100 per night in a Hawaii hotel.

FEMA also could not establish that 750 debit cards worth $1.5 million even went to Katrina victims, the auditors said.

Among the items purchased with the cards:

_an all-inclusive, one-week Caribbean vacation in the Punta Cana resort in the Dominican Republic.

_five season tickets to New Orleans Saints professional football games.

_adult erotica products in Houston and "Girls Gone Wild" videos in Santa Monica, Calif.

_Dom Perignon champagne and other alcoholic beverages in San Antonio.

_a divorce lawyer's services in Houston.

"Our forensic audit and investigative work showed that improper and potentially fraudulent payments occurred mainly because FEMA did not validate the identity of the registrant, the physical location of the damaged address, and ownership and occupancy of all registrants at the time of registration," GAO officials said.

FEMA paid millions of dollars to more than 1,000 registrants who used names and Social Security numbers belonging to state and federal prisoners for expedited housing assistance. The inmates were in Louisiana, Texas, Alabama, Mississippi, Georgia and Florida.

FEMA made about $5.3 million in payments to registrants who provided a post office box as their damaged residence, including one who got $2,748 for listing an Alabama post office box as the damaged property.

To demonstrate how easy it was to hoodwink FEMA, the GAO told of an individual who used 13 different Social Security numbers _ including the person's own _ to receive $139,000 in payments on 13 separate registrations for aid. All the payments were sent to a single address.

Likewise, another person used a damaged property address located within the grounds of Greenwood Cemetery in New Orleans to request disaster aid. Public records show no record of the registrant ever living in New Orleans.

Instead, records indicate that for the past five years, the registrant lived in West Virginia _ at the address provided to FEMA, the GAO said.

Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

http://www.comcast.net/news/index.js...13/412835.html

I wonder how many illegal aliens fraudulently received FEMA funding? But then they have been granted amnesty by this demon seed of a president and senate while American citizens will be punished. And the congress just voted itself another $3300 dollar a year payraise. More waste of taxpayer dollars. We the employers of these wastes of oxygen should be demanding a cut in their pay for their abysmal performance.

If I recall correctly, at the time, they said they weren't going to deny benefits to illegal aliens at all, because they were displaced too.

wastes of oxygen

...what an apt description!

I live in Florida and in the past 2 years was in the direct path of 3 hurricaines and we suffered significant damage to our home. I figured out after the 1st hurricane that FEMA was useless and gave up on getting any help from them. If you live in Florida you have heard of all the fraudulent claims that FEMA pays out. In fact the city I live in still has not been reimbursed from FEMA for millions in storm expenses. In fact the lack of response from FEMA was so bad the city now tells residents not to expect help from FEMA at all. For hurricanes the city used to tell us to have 3 days supplies on hand, the now tell us to have 7 days because we will get no help from FEMA. It has been proven 3 times now.

Here is a tip. To any of you who are ever involved in a distaster, natural or otherwise, DO NOT think that FEMA is going to help you in any way. You need to be self reliant.

I recall correctly, at the time, they said they weren't going to deny benefits to illegal aliens at all, because they were displaced too.

I heard the same thing and then since it was so massive.....just about anyone could come from anywhere and sign up. But sex-change operations? Hawaii? I heard some of the abuses were done by the higher ups who really didn't NEED the help but figured they deserved a break. It's just sad coz you know the ones that really NEEDED it and still do aren't getting it.

It appears the federal government is well on the way to collecting all the money they mistakenly handed out. No need to worry Bush has got the situation under control now.

http://www.10news.com

Hooters Won't Keep FEMA Relief Money Spent On Alcohol

POSTED: 5:59 am PDT June 16, 2006

WASHINGTON -- FEMA said it will be more than happy to accept a $200 check from Hooters.

Hooters is the restaurant chain that's famous for its chicken wings -- among other things.

The well-known -- some would say notorious -- restaurant chain has offered to reimburse FEMA for a bottle of Dom Perignon champagne bought with Hurricane Katrina relief money. Its chairman is upset after learning that someone used $200 of federal hurricane relief money to buy fancy champagne at a Hooters in San Antonio. Bob Brooks said it bothers him that resources meant to help victims of Hurricane Katrina went for a bottle of bubbly.

A FEMA spokesman said, "We will more than welcome the check from Hooters and appreciate their recognition in helping true disaster victims."

The champagne was among numerous examples of improper spending of hurricane relief money cited earlier this week by the congressional Government Accountability Office. The GAO said the bogus spending could be as high as $1.4 billion.

Hooters is no stranger to helping hurricane victims. Following Katrina, Hooters chairman Bob Brooks sent one of his Hooters Air 737s loaded with supplies into the Gulf Coast disaster area. The restaurant chain also donated $225,000 to the Red Cross Katrina relief fund.