Millions in Katrina aid squandered: a debit card for $450 ta

[LaPlaceFF]

Millions in Katrina aid squandered: a debit card for $450 tattoo
2/13/2006, 3:25 p.m. CT
By HOPE YEN
The Associated Press

WASHINGTON (AP) — The government squandered millions of dollars in Katrina disaster aid, including handing $2,000 debit cards to people who gave phony Social Security numbers and used the money for such items as a $450 tattoo, auditors said Monday.

Federal money also paid for $375-a-day beachfront condos and 10,777 trailers that were stuck in mud and unusable.

Overcharges, poor accounting and abuses will take "months or years" to rectify, the Government Accountability Office and the Homeland Security Department's inspector general concluded in preliminary reports on how billions of dollars in taxpayer money is being spent.

The Federal Emergency Management Agency recognizes it "made many, many mistakes," and is working on improvement, said Homeland Security inspector general Richard Skinner. "But they're not where they should be. In some cases, the government will have little legal recourse to recoup payments to contractors for payments."

Separately, the Justice Department said Monday that federal prosecutors had filed fraud, theft and other charges against 212 people accused of scams related to Gulf Coast hurricanes.

Forty people have pleaded guilty so far, the latest report by the Hurricane Katrina Fraud Task Force said. Many defendants were accused of trying to obtain emergency aid, typically a $2,000 debit card, issued to hurricane victims by FEMA and the American Red Cross.

The GAO report found that up to 900,000 of the 2.5 million applicants who received aid under the emergency cash assistance program — which included the debit cards given to evacuees — based their requests on duplicate or invalid Social Security numbers, or false addresses and names.

In other instances, recipients improperly used their debit cards intended for food and shelter for $400 massages, a $450 tattoo, a $1,100 diamond engagement ring and $150 worth of products at "Condoms to Go."

The reports called for stronger controls to verify the eligibility of disaster victims who apply for aid over the phone and Internet, better planning of emergency supplies for hurricanes and improved accounting of FEMA's vast inventory of temporary housing.

Senators decried the problems.

"Once again, FEMA failed to adequately plan for the very type of disaster that occurs virtually every year," said Susan Collins, R-Maine, who chairs a Senate panel reviewing the government's response to the storm.

Joseph Lieberman, D-Conn., said hurricane victims and taxpayers alike were being "ripped off." "It's unacceptable and ultimately infuriating. We need to do everything we can to insist that FEMA and DHS prepare for the next disaster," he said.

The White House and Homeland Security officials defended administration actions against the criticism that is still going strong more than five months after the storm.

"I reject outright the suggestion that President Bush was anything less than fully involved," White House homeland security adviser Frances Fragos Townsend said.

And Homeland Security Secretary Michael Chertoff rebuffed the idea that his department was preoccupied with terror threats at the expense of natural disasters.

Chertoff announced the creation of a full-time FEMA response force of 1,500 new employees and the establishment of a more reliable system to report on disasters as they unfold.

The audits released Monday do not try to estimate a total dollar figure on waste and abuse, but GAO auditor Gregory Kutz told senators during a hearing that it was "certainly millions of dollars; it could be tens or hundreds of millions of dollars."

That includes money for hotel rooms for evacuees that were paid at retail cost. Among the charges: $438 rooms in New York City and beachfront condominiums in Panama City, Fla., at $375 a night.

FEMA also may have bought too many temporary homes, including 10,777 units that currently sit empty in sinking mud in Hope, Ark.

Meanwhile, a one-day "snapshot" investigation found a handful of cases where hurricane victims improperly sold free military foodstuffs known as "Meals-Ready-to-Eat" on eBay.

The reports weren't negative. An initial review by Skinner found that FEMA's decision to sign a contract with Carnival Cruise Lines for Hurricane Katrina housing shortly after the Aug. 29 storm "was reasonable under the urgent circumstances."

The six-month, $236 million deal with Carnival for three full-service cruise ships — which initially sat half empty for several weeks on the Gulf Coast — had been criticized by lawmakers of both parties as a prime example of wasted spending in Hurricane Katrina-related contracts.

However, Skinner said the decision appeared to be an economical choice "in a high-cost area such as New Orleans so long as occupancy remains high." A review of the contract's specific terms was continuing.

Some lawmakers expressed concern about the integrity of the total $9.2 billion in Katrina contracts awarded so far. Of more than 700 FEMA contracts valued at $500,000 or greater, more than half were awarded without competition, often to politically connected companies such as Bechtel Corp. and AshBritt Inc.

Audits of those no-bid contracts are under way.

"We want to go after individual people, but we also want to go after the big fish that conduct fraud as well," said Sen. Carl Levin, D-Mich.

___

On the Net:

GAO audits: http://www.gao.gov/docsearch/repandtest.html

[HurryKane]

$150 worth of products at "Condoms to Go."

I would think that safe sex falls under reasonable usage of the debit card. No need for surprise Katrina babies

FEMA also may have bought too many temporary homes, including 10,777 units that currently sit empty in sinking mud in Hope, Ark.

And yet, there are still some people living in tents in sinking mud in the disaster area. GIVE 'EM THE DANGED TRAILERS, FEMA.

[Pearl River]

This happened to many of the debit card holders.

[Suzanne] Lynch [vice president for security and risk services at MasterCard International] said that as the Red Cross began issuing MasterCard debit cards to victims of Hurricane Katrina earlier this month, a newspaper photographer working on a story about the program took a picture of one recipient holding a card. The photo was quickly posted on the Internet web. "Within eight hours," Lynch said, "there was fraud on the card."

"Somebody had seen the picture — and unfortunately they hadn't blocked the number — and so somebody used the card fraudulently."


So not all fraud was done by the actual card holders.

[ROCK]

I saw a group of evacuees at a local Wal-mart days after the storm. It wasn't food or clothing they were buying it was a ton of cd's, radios, video games and the like. Sad....

[Javlin]

I hardly got anything and really did not need that much I was one of the lucky Ones.But as Hk said people are still living in tents and the sort while some only thought of scamming the system.That gets you angry.

[LaPlaceFF]

I hardly got anything and really did not need that much I was one of the lucky Ones.But as Hk said people are still living in tents and the sort while some only thought of scamming the system.That gets you angry.

I heard of a story of someone who used their card for rims for their car

[Javlin]

Thanks LaPacceFF bloodpressure now 135/98 what a nice guy

[Pearl River]

The cards were issued only for a couple of days because of logistics issues. Most of the money was deposited in personal bank accounts after that. Unfortunately ROCK, there were too many doing that with there cards and it's a shame. But these are the same type of people who were feeding off the government to begin with. I know so many who did not receive a penny.

[CentralFlGal]

A few bad apples always ruins the bunch.

The individuals caught squandering the relief aid on frivolous activity should be held accountable to the full extent of the law so that future victims are not negatively impacted by these cretins.

[LaPlaceFF]

A few bad apples always ruins the bunch.

The individuals caught squandering the relief aid on frivolous activity should be held accountable to the full extent of the law so that future victims are not negatively impacted by these cretins.

AMEN!!!

[Jim Cantore]

A few bad apples always ruins the bunch.

The individuals caught squandering the relief aid on frivolous activity should be held accountable to the full extent of the law so that future victims are not negatively impacted by these cretins.

Put them in jail for life

[jbgreig]

The problem is that there were no guidelines whatsoever. Sure, it's obvious that some of the things mentioned above were fraud, but when FEMA came to our town after Rita, it was clear it was a grant and the money didn't need to be payed back.

I chose not to be a panhandler, but ANYONE who applied got their $2000 FEMA check. And I mean people who were initially told they did not qualify. People who make $300k + a year. This money was not used (by most) for hurricane survival, but for fun! In my town of Beaumont, TX, there are still not businesses open because they had to replace many workers.

Why? Not because of damage, but because many got their $2000 FEMA checks and didn't come back to work. It's a running joke around here, but it makes me sick that m tax dollars are going to fund a bunch of lowlifes!!!!

Sorry for the rant, it's been a long time coming.

It's disgusting, but true.

[MGC]

Over here in Mississippi, business are haveing a hard time finding workers because a lot of people are drawing unemployment.....MGC

[CentralFlGal]

Wow. I try hard to remain optimistic about the future of the human race, but stories of humans acting like parasites just keep growing in frequency.

Think I'll find a cave somewhere and start painting stick figures of animals.

[njoynit]

I think they should check their "FEMA assessors"out on their contacts more closely.
one of my neighbors ,they lived in campers&are disabled. had trees land on all 4 of their campers& FEMA denied them aid.(are on their last appeal now)They are still still staying a few roads over in someones shed.they finally took their power pole from their property& moved to the shed their staying in cause all their $$ was going in the genrator that someone gave them. But yet someone else out here...just cause they evacuated(wow a whole 30 minutes too)and bought a generator.they got a FEMA check and had it in 2 days after Rita.

I had some damage,but found more when finally got a decent rain months after Ritas passing.But came out better than my SIL.Who had damage to roof,made repairs then had house burn down (completely)cause fireplace was damaged& she's still waiting to hear back from FEMA& living in one of them 4 damaged campers.Cause when FEMA heard someone out here was letting them stay in their FEMA trailor,they came and got it cause was a "handicapped unit"being improperly used.was pretty junky for being new.the shower sprayed everywhere& they used duct tape to keep the freezer shut.this was a new travel trailor delivered by FEMA& the base heaters don't heat very well& we don't get that cold here....

I know of folks who were hit by katrina that still have not been seen by FEMA.they've been told the assesors are in the area& one can't even show her house to them now cause someone bull dozed their whole street& hauled the debree off.
I use to shake my head& chuckle when reading FLs comments on calling FEMA mis-management.They were being nice I guess huh...or it got tonz worse when Katrina& Rita.did its havock.

While I was standing in RED CROSS line...the guy 8 back from me was drinking beer.this was before 8 am.i watched him consume 5 while waiting& did wonder about his 7 up later..was it beer?or stright?

[Audrey2Katrina]

There WAS a rumor that FEMA would hold you accountable for the money, and, frankly I had no Idea that the first $2K was automatic. I knew I had already lost over $1.5 K in expenses and possibly my job (at least a month) when the offer first came. Once I got the deposit, I got so nervous about it ( I have NEVER received a penny in gov't. aid before, nor do I want it in the future), that I called FEMA up and had to TELL them NOT to give me the next installment, as they were just perfectly willing to keep pumping the money into the account. Turns out, upon return, I lost EVERYTHING on the first floor (which is where most of my valuables were), of my apartment, so I was in hock for well over $2K, but I just don't like using taxpayer monies for anything personal. I did apply for an SBA "LOAN" so I can pay every bit back; but it's just annoying that so many people who didn't have much of a loss, and certainly no "need" for this money, got it popped into their accounts simply for going online and requesting it. I know of one family where the wife, husband, daughter AND son, ALL applied... and ALL received, not just the first check; but the second and a THIRD... and from what I noted, they received virtually NO flooding at all, and minimal wind damage in their area. This kind of mooching of gov't funds boils my blood. Meanwhile, people in genuine need, were being overlooked, unable to apply online, or denied/delayed incessantly. It'svery frustrating. I was SO hoping FEMA adjusters would go to each house and nab the abusers--but quite frankly, they were overwhelmed with the numbers of requests, and I guess it was just cheaper to let it go, then initiate all the hassle with bringing these parasites to justice.

To me, one of the saddest things about all this--human tragedy aside--is that it shows just how much people are willing to become "wards of the state," and that is just one step away from total socialism IMHO. Give me the protection due under the constitution, and perhaps a "lending" hand--but all the freebies should never have happened except for verifiable urgent need by those who truly couldn't manage it themselves at all. I know,... too much hassle there too, it's a lose-lose scenario. Tragedies like this bring out the best, and all to often the very worst in some people.

A2K

[Pearl River]

MGC wrote

Over here in Mississippi, business are haveing a hard time finding workers because a lot of people are drawing unemployment.....MGC

Same here in Slidell and Pearl River.

[bevgo]

I got the initial 2k but it was used to bring back scarce supplies and pay the expenses of my evac. Fema then deposited the rental assistance check in my account. Could not figure that one out cause the inspector had already visited and we told them we needed no further assistance. I did NOT want to take the chance of sending the $$ back with all the screw-ups so it is sitting and waiting for FEMA to ask for it back--LOL. I will continue holding on to it for a long time so I can be sure there is not a problem. I did ask the FEMA guy that inspected my home in the NO area and he told me to not look a gift horse---- Kinda surprising! FEMA has been a disaster.

[CajunMama]

I know of one family where the wife, husband, daughter AND son, ALL applied... and ALL received, not just the first check; but the second and a THIRD... and from what I noted, they received virtually NO flooding at all, and minimal wind damage in their area.

You could anonymously turn them in. That's right out theft.That's you and me and other honest people paying that. That just riles me up to know end.

[terstorm1012]

ugh...i saw a report on nightline about a nurse from New Orleans, lost everything that she worked for for herself and her kids and is now in a trailer park getting little or no help....and then i read that people are getting tatts and rims.

ugh....people piss me off sometimes.... bloodpressure up, need a walk!