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Bogus claims on FEMA aid alleged

U.S. prosecutors say 26 defendants untouched by two hurricanes cashed in.

By ASSOCIATED PRESS
Published May 26, 2006

TAMPA - A grand jury indicted 26 Orlando area residents on charges of making fraudulent claims for federal assistance after two hurricanes struck the Gulf Coast last year, prosecutors said Thursday.

Federal prosecutors say the defendants collected a total of $150,000 in emergency assistance from the Federal Emergency Management Agency, though they didn't live in areas affected by Katrina and Rita.

Because so many people were affected by the storms, FEMA provided a streamlined process to quickly get at least $2,000 to those who needed assistance. People whose primary residence was damaged could apply via the Internet or a toll-free telephone number.

Those indicted made fraudulent claims for amounts ranging from $2,000 to more than $100,000, prosecutors said. The indictments were a result of an investigation called Operation Storm Chaser.

The charges include conspiracy, submission of a false claim to a governmental agency, theft of government property, mail fraud, wire fraud and making a false statement to a government agency.

"As we enter a new hurricane season next week, we will aggressively pursue anyone who attempts to take advantage of a natural disaster to defraud FEMA or anyone else," U.S. Attorney Paul I. Perez said in a statement.

[Last modified May 26, 2006, 06:12:29]