GAO: FEMA Paid Up to $1.4 Billion in Bogus Katrina Claims
Thursday June 15, 2006
Fraud and program abuse allowed by FEMA during the beleaguered agency's response to Hurricane Katrina costs taxpayers over $1.4 billion, according to a General Accounting Office (GAO) report released yesterday.
According to the GAO report, about 16 percent of the more than $6 billion FEMA paid out in Katrina claims were “improper and potentially fraudulent.”
A sampling of incidents cited by the GAO includes:
- Payments to persons claiming storm damage to a vacant lot ($6,000), post office boxes and cemeteries;
- Payment of housing assistance to persons who had not been displaced;
- No accounting for the actual use of 750 debit cards worth $1.5 million sent to hurricane Katrina victims; and
- Katrina recovery debit cards used for a Caribbean vacation, professional football tickets, and adult entertainment.
Also See:
FEMA 'Retooled' for 2006 Hurricane Season
GAO Report on FEMA Payments (.pdf) – Highlights (.pdf)
Comments
Well the free money jumped right over me, in ala, I still have a huge live oak, in between my, and my neighbors hous, about to faLL on their trailer or my house, what is left of it, I am 50 yrs old, disabled. have been begging for help on deaf ears..and to top it all off, our near and dear insurance company, sent me a letter of cancellation to my policy…This has all been insane down here, seems like the rich get to re-build thoier fancy homes, only to be torn apart this hurricane season..well let me go, I have really tried to figure this all out, but to me it is all who you know, and how far your worth kissing butts…..just me, Jeannie ty for the sounding board, it is just 1/4 of a huge oak is looming over my house, and this will alos be pre-existing next yr, lol……you can’t win for tryin……… thanks again, keep up the good work