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HANCOCK COUNTY MAN SENTENCED FOR KATRINA FRAUD

THURSDAY, NOVEMBER 15, 2007

FOR IMMEDIATE RELEASE

GULFPORT, Miss. – Joseph Pugh, of Diamondhead, Mississippi was sentenced on November 14, 2007 to serve twelve months and one day in federal prison for Hurricane Katrina fraud, U.S. Attorney Dunn Lampton and State Auditor Phil Bryant announced. Pugh was also ordered to repay $12,107.47 to FEMA, the United States Department of Agriculture and the American Red Cross.

Pugh previously pled guilty to making false statements to the Mississippi Development Authority and the Small Business Administration and to stealing government funds from the Federal Emergency Management Agency.

Pugh was initially charged in a twelve count indictment alleging filing a false claim with FEMA, making a false statement to the Mississippi Development Authority, making a false statement to the Small Business Administration, making a false statement to the U.S. Department of Agriculture through the Mississippi Department of Human Services for disaster food stamps, theft of government funds, mail fraud, and wire fraud.

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.

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.