Government claims FEMA paid $5.2 million to fictitious company to build relief camp

WWLTV ^ | 02/28/2006 | Associated Press

[LA Woman3]

BATON ROUGE -- A Virginia company that did not even exist was paid $5.2 million by the Federal Emergency Management Agency to set up a base camp for disaster relief workers, but most of the work was never done, authorities alleged.

On Monday, U.S. District Judge James Brady froze the assets of Lighthouse Disaster Relief and owners Gary Lee Heldreth and Kerry Lynn Farmer after the Justice Department claimed the money was being spent on vehicles and checks were being cashed $10,000 at a time.

Lighthouse was one of two companies that bid on the contract to provide food and shelter for 1,000 emergency workers in St. Bernard Parish days after Hurricane Katrina hit the Gulf Coast Aug. 29.

Although the company had no experience in base camp construction and operation, it promised federal authorities it could deliver one in two days, according to papers. According to the lawsuit, the facility wasn't ready for any residents until Oct. 2 and never was able to support more than 400 people.

Investigators found that Lighthouse Disaster Relief was not even incorporated until October 2005 a month after it won the FEMA contract, according to the court filing.

Neither Heldreth nor Farmer could be located Monday for comment.

[LA Woman3]

http://www.nola.com/printer/printer.ssf?/base/news-5/1139037606112900.xml

[Hank Rearden]

A Virginia company that did not even exist was paid $5.2 million by the Federal Emergency Management Agency to set up a base camp for disaster relief workers, but most of the work was never done, authorities alleged.

An imaginary company didn't do anything? Well, duh.

[jdsteel]

They also had a contract to not fix the levees for the last 50 years.

[sure_fine]

good job Brownie

[sure_fine]

All told, Premier Party Rentals has received at least four contracts related to setting up a tent camp at the site, known as Camp Premier, worth more than $6.8 million, according to a FEMA spreadsheet detailing Katrina-related contracts. Those figures would put the taxpayers' total bill for the temporary tent housing at $12 million, but a federal official familiar with the case said additional payments were made to Premier in December and January. Those payments boost the total to more than $20 million, said the official, who spoke on condition of anonymity, citing the investigation.

it just keeps getting worser and worser

[Homer1]

heckuva job

[butternut_squash_bisque]

Hells bells, my old Boy Scout Troop (1959-62) could have done it in under a day, for around $5 million.

[ncountylee]

Operated by phantom NO cops?

[CajunConservative]

These weren't NOPD crooks. They were from out of state like many of the other fraudulent cases. It's not just Louisiana that is corrupt.

[Sunnyflorida]

FEMA should be abolished.

Increase the NOAA budget. GIve away free warning radios. If people do not get out of the way too bad.

[quack]

"PASTOR" Gary Heldreth.

http://www.pbs.org/newshour/bb/economy/july-dec05/contracts_10-04.html

Found this in a search.