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Government paid $1.4 billion in bogus hurricane aid
Key Excerpts from Article on Website of Houston Chronicle/Associated Press
Posted: November 11th, 2006
http://www.chron.com/disp/story.mpl/front/3966483.html
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. 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. 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. 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. Among the items purchased with the cards: an all-inclusive, one-week Caribbean vacation; five season tickets to New Orleans Saints professional football games; and adult erotica products in Houston. 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.
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