Auditors Find Huge Fraud in FEMA Aid

New York Times ^ | 2/11/06 | ERIC LIPTON

[conservative in nyc]

Thousands of applicants for federal emergency relief money after Hurricanes Katrina and Rita used duplicate or invalid Social Security numbers or bogus addresses, suggesting that the $2.3 billion program was a victim of extensive fraud, a Congressional auditor will report Monday.

The examination of the so-called Expedited Assistance program determined that the Federal Emergency Management Agency failed to take even the most basic steps to confirm the identifies of about 1.4 million people who sought expedited cash assistance, leaving the program vulnerable to the "significant fraud and abuse," the Government Accountability Office intends to report.

The auditors did not try to estimate the total dollar amount of fraudulent claims. But the report says that FEMA itself had found that 900,000 of the 2.5 million applications for all forms of individual assistance were "potential duplicates."

Even when FEMA's automated computer system picked out what might be fraudulent applications, payments were at times still sent, says the advance testimony of Gregory D. Kutz, the managing director of the G.A.O.'s forensic audits unit.

The controls were so lax that auditors were able to secure their own $2,000 relief check by using "falsified identifies, bogus addresses and fabricated disaster stories," and then simply waiting for the money to arrive in the mail, says the report for the Senate Homeland Security and Governmental Affairs Committee, a copy of which was obtained by The New York Times.

Nicol Andrews, a FEMA spokeswoman, said the agency recognized there could be fraud. But Ms. Andrews said the priority was getting aid as fast as possible to hundreds of thousands of families in dire need.

"We took a calculated risk in a catastrophic situation," she said. "It was the right thing to do. Unfortunately, some may have cheated the system."

She added that some arrests have been made.

--Snip--

[conservative in nyc]

It was Bush's fault that FEMA didn't send aid quickly enough after the hurricane. It is now Bush's fault that FEMA sent aid too quickly and some slime took advantage of the program. This will be the message coming Monday from Democrats on Capitol Hill.

I see prison time in some "victims'" future.

[goldstategop]

Liberals are constantly surprised by human nature. To conservatives, its a fact of our mortal existence.

(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")

[HiTech RedNeck]

But the report says that FEMA itself had found that 900,000 of the 2.5 million applications for all forms of individual assistance were "potential duplicates."

I knew NOLA was full of grifters but it's staggering that the problem was this bad.

[fella]

Our so called welfare system was specifically design for people to take advantage of. So now we're supposed to be shocked that people took advantage of it?

[TCats]

If these Gov't incompetents had any brains they would already have in place systems that are unified, that rely on unique identifiers and which access commonly used methods of verification such as address validity, SS# verification, drivers license number, etc.

This problem of serious fraud in emergency payments is not new. Unfortunately, neither is Gov't lethargy and incompetence in dealing with it.

[river rat]

"....found that 900,000 of the 2.5 million applications for all forms of individual assistance were "potential duplicates."

For the folks in Rio Linda -- that means more than 1/3 of the applications are potentially fraudulent (crooked)...

Every bastard that filed a fraudulent application - should be bared for life from any State or Federal "welfare"...

Semper Fi

[Iris7]

My favorite "rate of change of liquidity" indicator shows a huge jump in Federal spending starting on the day Katrina hit. Huge, not some penny-ante $2.3 Billion.

My indicator cannot kick out dollar amounts but it was a bunch of money, maybe well over $100 Billion.

Since then the Federal Reserve Board has soaked up the money but it looks like in doing so they have run the short term interest rates up too high relative to the long. Looks to me from indicators that the Dems will get the Presidency in 2008 as a result. Sigh, double Sigh.

[conservative in nyc]

You're assuming that the fraudulent applications came from New Orleans residents. There was fraud in the 9/11 assistance - people from as far away as Las Vegas were getting aid for attacks that occurred in New York, Virginia and Pennsylvania.

I can't say I'm surprised about this. And I also know that if FEMA tried to do anything to stop duplicate payments in the aftermath of the storm, FEMA and President Bush would have been vilified. This is one of those situations where it would have been Bush's fault no matter what, according to the MSM and Democrats.

[Doogle]

I see prison time in some "victims'" future.

..very little ,if any

[taxesareforever]

Thousands of applicants for federal emergency relief money after Hurricanes Katrina and Rita used duplicate or invalid Social Security numbers or bogus addresses,

Ha ha ha. And there are those who think the government is capable of checking libraries for books they checked out and also monitoring their personal phone calls.

[bayourant]

OH that aint the half of it. With so many people showing up in mass numbers esp in arkansas and texas with no ID. I am sure alot of out state of Louisiana people took advantage of it. That was a problem in Dallas a week after the storm I kept hearing.

[kcvl]

Your tax dollars at work... $300,000,000 of it.



9,000 FEMA Trailers Going Unused In Arkansas


http://kutv.com/topstories/local_story_039123957.html





http://www.todaysthv.com/assetpool/images/0628225616_FEMA_Trailors1.jpg



FEMA Mobile Homes For Miles



http://www.firstcoastnews.com/assetpool/images/0621081334_limbo.jpg


http://www.todaysthv.com/news/news.aspx?storyid=23706







Federal-local conflicts keep victims out of FEMA trailers


http://federaltimes.com/index2.php?S=1465860







Communities Shunning FEMA Trailers

NEW ORLEANS, Dec. 29, 2005


(CBS) Four months after Hurricane Katrina, efforts by the Federal Emergency Management Agency to place displaced victims into trailers are being hindered by communities balking at hosting such trailers, reports CBS News Correspondent Trish Regan.


http://tinyurl.com/dx72y




Congressman Ross wants to know why nearly 9,000 homes remain at the airport since FEMA requested them after the hurricane hit last August. Ross says out of 217,000 homes destroyed in the hurricane, only 65,000 manufactured homes have been delivered.



The trailers are costing tax payers $25,000 dollars a month. Dennis Ramsey is the mayor of Hope. His city has a two-year contract with FEMA to use the airport as a staging ground for the mobile homes. Hope is guaranteed $600,000 dollars in the deal. While Mayor Ramsey likes the money, he'd like to see the mobile homes move out.



hundreds of thousands of hurricane victims remain in hotel rooms and emergency shelters, despite more than $2 billion spent by FEMA for 120,000 temporary trailers and mobile homes.

[furquhart]

Actually, depending upon how you parse the wording, it could mean that up to 1.8 million of the 2.5 million were from people engaged in fraud in some fashion.

Simply put, if 900,000 are "potential duplicates", does that mean that there are 450,000 people who filed multiple claims, or that those 900,000 "potential duplicates" match up with other claims from the remaining 1.6 million.

[quietolong]

Maybe it's all those missing Cops

[YaYa123]

To Jimmy Carter: "We only have to recall the color of the faces of those in Louisiana, Alabama and Mississippi," Carter said," to know who stole all the FEMA money.

[WasDougsLamb]

Every bastard that filed a fraudulent application - should be bared for life from any State or Federal "welfare"...



-----I agree totally.

[Pete'sWife]

I, for one, am shocked.

Shocked, I tell you, SHOCKED!!!!

Oh, the humanity...!

[mcshot]

And I double your agreement!

mc

[q_an_a]

Good points. -

One thing for every conservative to notice about this story - the audit is being done within 5 months of the disaster - not two years later. It is possible to track down people with that type of audit. Another example of how this administration is doing a better job with money than people think.

[B4Ranch]

Hey, it made it look lke the economy was doing great so Bush got the shine from all the spending. There's no need to remind yourself that we pay for this fraud.