Federal, State Officials Remind Mississippians To Be On Guard For Fraud
Release Date: January 13, 2006
Release Number: 1604-210
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JACKSON, Miss. -- With so much disaster assistance being distributed to Mississippi hurricane victims, the U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) is working to ensure that disaster relief funds go only to those legally entitled to receive them. Both state and federal officials are actively doing everything possible to avoid fraud.
The DHS’s Office of the Inspector General (OIG) and the U.S. Department of Justice along with other federal agencies, investigate cases of fraud, waste, and abuse of federal disaster funds.
“With more than 500,000 requests for aid in Mississippi, it’s inevitable that there will be some people looking to take advantage of the situation,” said Nick Russo, federal coordinating officer for the Katrina recovery. “But trying to defraud the government is a felony. Prison time and a heavy fine are very real possibilities.”
People have been charged with criminal violations related to FEMA relief funds in the immediate aftermath of Hurricane Katrina. Some complaints already called in include allegations that applicants are using false names or fictitious addresses; claiming non-existent losses or losses to someone else’s property; misusing FEMA grants; receiving duplicate payments from FEMA and insurance companies; and stealing FEMA checks. Convictions can lead to a maximum of five years imprisonment and fines up to $250,000 per count.
There are several ways for government officials to detect fraud. One is through an electronic process that cross-checks information from FEMA, its partner agencies, and insurance companies to detect duplicate or fraudulent applications. Additionally, homes of applicants are inspected to verify damages and losses claimed. Suspected cases of fraud are referred to the U.S. Department of Justice for investigation and possible prosecution.
“We want the benefits of these programs to go to the real hurricane victims, not people who try to cheat the system,” said Robert Latham, executive director of the Mississippi Emergency Management Agency (MEMA).
Any applicant who has made a mistake in reporting damages or misrepresented losses will be given an opportunity to correct or cancel the claim. Anyone who makes an error when submitting a claim can contact the FEMA Helpline at 1-800-621-FEMA (3362) or (TTY) 1-800-462-7585 for speech- or hearing-impaired to correct that error.
Mississippians who suspect fraudulent activity can report it – anonymously if they wish – on the Hurricane Relief Fraud Hotline at 1-866-720-5721. Fraud can also be reported to the Federal Trade Commission at 1-877-382-4357 or (TTY) 1-202-326-2502 for speech- or hearing-impaired. The last number is not toll-free.
Reports of fraud can also be mailed to the Office of the Inspector General, Federal Emergency Management Agency, 500 C St. SW, Washington, D.C. 20472.
FEMA manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, works with state and local emergency managers, and manages the National Flood Insurance Program. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003.
Last Modified: Friday, 13-Jan-2006 08:31:21