Interesting. I wonder if there could be a case made that the people who received the money, knowing they received it under false pretenses, could face criminal prosecution? I've always maintained that federal money should not be used to finance private home reconstruction. However, the idea of getting transfer payments back puts an even more interesting twist on things.
You betcha. My understanding of this story is these folks got wiped out by a hurricane, and when another one breezed through town they filed a second claim on property that came pre-destroyed.
There have been prosecutions of people who filed fraudulently.