FEMA Loses Nearly $500 Million in Katrina Aid to Fraud

[babylonsister]

FEMA trying to recover hurricane aid

By FRANK BASS and EILEEN SULLIVAN
Associated Press Writers


WASHINGTON (AP) -- The Bush administration now acknowledges it is trying to recover nearly $500 million from people who improperly received federal aid money intended to help victims of two deadly hurricanes, Katrina and Rita, along the Gulf Coast two years ago. It said the amount may increase further.

"This is a moving target and not finite," said James McIntyre, a spokesman for the Federal Emergency Management Agency.

The government's newest estimate of improper aid represents $494 million FEMA paid to 134,000 people who were ineligible for the aid they received. More than half the money went to people who couldn't prove residency, according to FEMA figures. Overpayments and duplicate payments account for most of the remainder.

The amount had exceeded $500 million, but the agency wrote off nearly $27 million because of appeals or hardship waivers. The $500 million figure would represent nearly $1 of every $10 in government aid intended to help storm victims.

Congressional investigators determined people provided false addresses, other people's social security numbers and Gulf Coast addresses that did not exist. Because of the chaotic situation and loose controls, nearly half the 11,000 people who received emergency debit cards also received FEMA checks, investigators said.

more...

http://hosted.ap.org/dynamic/stories/K/KATRINA_FRAUD

[DS1]

1. not finite?

It's infinite?

Maybe, final?

[spanone]

2. i doubt they 'lost' it. more like 'funneled' to cronies

[miles 2 go]

3. I worked at the Post Office during a huge flood in Missouri

In the late 80's-early 90's. I had a list 3 pages long of names of people who were receiving a fema check but to whom I had never delivered any mail. These people did not live there. Now some of them could have been the landlord and not the renter who I would be familiar with, but that would be easily checked in the records.
I turned in my pages to my supervisor and were given them back with the message that it was easier to pay it then to track it down.(I think this was the message he was given by fema)

This particular area flooded regularly and some of the people actually went out and bought non working refrigerators and such to put on their lower levels just so they could claim them as damaged. A lot of fraud going on but no one cared.

[babylonsister]

5. Not many care now, it seems. And welcome to DU, miles 2 go! nt

[miles 2 go]

9. Thanks for the welcome. Have been reading DU for about 3 yrs now N/T

[KamaAina]

4. Too hard to track 'em down. Much easier to blame it all on La. Dems.

:sarcasm:

Plus, that strategy is already paying big political dividends for them: repuke Gov coming in, and their only possible Senate pickup next year. :puke:

[uppityperson]

6. Another link and a wish

I couldn't find article from your link, here's another, with thanks.
http://ap.google.com/article/ALeqM5ietgu6NQKMtxYrL9vovEGRnZTBFAD8TAPT680

Now for the wish. I wish that those who need the aid could get it, and those who get it through fraud get prosecuted to the fullest. Another wish. I wish that the system be set up better to actually GET aid to those who need it rather than cronies.

[Hubert Flottz]

7. Heck-of-a-job Cronies!

Brownie must still be there!

[MagickMuffin]

8. Maybe FEMA should recoup some of the $73,000,000 from BLACKWATER USA

I did an extensive research on this and that's how much they made doing whatever the hell they were doing in NOLA.
These payments were over a two year period. Sure would like to know what they were doing over that length of time.

I couldn't read the article you linked to but I'm almost certain they mentioned the other fraud known as Blackwater USA.