Press Releases
FOUR ADMIT TO DEFRAUDING AMERICAN RED CROSS; ONE SENTENCED
October 2, 2008
FOR IMMEDIATE RELEASE
Four Louisiana residents pled guilty in separate cases this week to defrauding the American Red Cross, announced U. S. Attorney Jim Letten.
LEOLA STEWART, age 44, a resident of Reserve, TAMMY KING WATTS, age 41, a resident of Hammond, YANATA BROWN, age 27, a resident of Loranger, and ROSALIE JOHNSON, age 59, a resident of Gibson all admitted in federal court that they submitted fraudulent applications for financial assistance to the Red Cross in the wake of Hurricanes Katrina and Rita in the fall of 2005. Additionally on Wednesday, DEBRA McGOWAN, age 43, a resident of Hammond was sentenced to five (5) years probation and ordered to pay full restitution for her involvement in a similar scheme.
According to court documents, the individuals applied for and received disaster assistance funds from the Red Cross multiples times during the fall of 2005. The Red Cross made disaster assistance money of up to $1565 available to those affected by the hurricanes on a one-time only basis. The defendants repeatedly applied for these funds throughout the early fall of 2005, each time indicating that they had not yet received any money at all from the Red Cross. In all, the five convictions represent over $50,000 fraudulently obtained from the American Red Cross. Upon sentencing, which will take place in January of 2009, the defendants each face a maximum term of imprisonment of twenty (20) years and a fine of up to $250,000.
The U. S. Attorney stated that these convictions are representative of the excellent team work among federal law enforcement agencies and stressed that the effort to prosecute disaster-related fraud arising out of the hurricanes of 2005 will continue.
The cases were investigated by the United States Postal Inspection Service, the Federal Bureau of Investigation and the United States Attorney’s Office for the Eastern District of Louisiana. The cases were prosecuted by Assistant U. S. Attorney Dan Friel.
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