Press Releases
MOSS POINT MAN FOUND GUILTY OF KATRINA FRAUD
THURSDAY, MARCH 13, 2007
FOR IMMEDIATE RELEASE
GULFPORT, Miss. – Lee Taylor, of Moss Point, Miss., was found guilty in U.S. District
Court on Wednesday, March 12, of three counts of fraud and one count of theft against the
Federal Emergency Management Agency (FEMA), and one count of making a false statement to
the Mississippi Development Authority, U.S. Attorney Dunn Lampton announced today.
Taylor was found guilty of wire fraud by creating and executing a scheme to defraud
FEMA in an attempt to receive Hurricane Katrina disaster assistance funds, theft of government
funds by fraudulently obtaining FEMA assistance, and for making a false statement to the
Mississippi Development Authority in an attempt to receive funds under Phase II of the
Homeowners Assistance Program. Taylor received $23,841.06 and a travel trailer from FEMA
by claiming to live in a house he owned, but he did not live in prior to, or at the time of,
Hurricane Katrina. Taylor was also initially approved to receive over $90,000.00 from the MDA
as a result of his claim that he occupied the damaged residence at the time of Hurricane Katrina.
At the time of his conviction, Taylor was living in a local hotel at FEMA’s expense while
the Mississippi Emergency Management Agency installed a Katrina Cottage on his property.
Taylor is scheduled for sentencing before United States District Judge Halil S. Ozerden on June
16, 2008 at 10:00 a.m. in Gulfport. He faces a maximum sentence of 105 years in prison and
$1,250,000.00 in fines.
This case was investigated by agents from the Federal Bureau of Investigation, The
Mississippi State Auditor’s Office, the Small Business Administration and the United States
Department of Agriculture. Assistant United States Attorney’s Jay Golden and Scott Gilbert
prosecuted the case.
In September, 2005, Attorney General Alberto R. Gonzales created the national
Hurricane Katrina Fraud Task Force, designed to deter, investigate and prosecute disaster-related
federal crimes such as charity fraud, identity theft, procurement fraud and insurance fraud. The
Hurricane Katrina Fraud Task Force - chaired by Assistant Attorney General for the Criminal
Division, Alice S. Fisher, includes members from the FBI, the Federal Trade Commission, the
Department of Labor Office of Inspector General, the Postal Inspector’s Office and the
Executive Office of United States Attorneys, among others.
Pursuant to the Justice Department initiative, a local Katrina Fraud Task Force,
consisting of over 20 Federal and State law enforcement agencies, was formed in the Southern
District of
Mississippi to pursue and prosecute individuals who engage in fraud associated with the
hurricanes. The Mississippi State Auditor Fraud Prevention and Protection Unit investigates
allegations of fraud in the Homeowner Grant Program as part of the local task force.
If anyone has information concerning possible fraud being committed during the post-
Katrina recovery effort, please call either the DHS-OIG Fraud Hotline at 1-866-720-5721 or the
FBI Fraud Hotline at 1-800-225-5324.
