Disaster Victims Encouraged To Apply For FEMA Aid But Warned Against Making Fraudulent Claims 

Release Date: February 10, 2005
Release Number: 1577-006

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PASADENA, Calif. -- Residents and business owners in Los Angeles and Ventura Counties are encouraged to apply for disaster assistance if they suffered damages or losses as a result of the severe storms which occurred from December 27, 2004 through January 11, 2005. At the same time, federal and state officials are warning that a system is in place to identify fraudulent applicants.

The U.S. Department of Homeland Security's Federal Emergency Management Agency (FEMA) and the U.S. Small Business Administration (SBA) say disasters always bring forth a small number of people who try to cash in on others' misfortunes by misrepresenting themselves as disaster victims in order to receive assistance intended for eligible persons.

"Federal disaster aid is paid with taxpayers' money," said David Fukutomi, FEMA's federal coordinating officer. "While we do not want to discourage anyone from applying for federal assistance, we will enforce the law to protect honest citizens and keep disaster funds out of the wrong hands."

Fukutomi said a number of methods are used to detect fraud. An automated system crosschecks information with other agencies, and applicants are asked about insurance coverage to weed out duplication of benefits. Field inspections are conducted to verify losses and damages for every person who applies.

Conducting audits and investigating possible fraudulent activities is standard procedure in all federal disaster operations. Potential cases of fraud or misuse are referred to the Department of Homeland Security's Office of Inspector General (OIG). Anyone with knowledge of fraud, waste or abuse relating to disaster contracts, programs or personnel is encouraged to call the OIG Fraud Hotline at 1-800-323-8603.

To register with FEMA for disaster aid, homeowners, renters and business owners should call 1-800-621-FEMA (3362). The number for the hearing or speech impaired is 1-800-462-7585, TTY. Operators are available from 8:00 a.m. to 6:00 p.m. daily. Disaster aid varies on a case-by-case basis.

SBA is the federal government's primary source of money for the long-term rebuilding of disaster-damaged private property. SBA helps homeowners, renters, businesses of all sizes, and private non-profit organizations fund repairs or rebuilding efforts, and cover the cost of replacing lost or disaster-damaged personal property. These disaster loans cover uninsured and uncompensated losses and do not duplicate benefits of other agencies or organizations.

FEMA prepares the nation for all hazards and manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, trains first responders, works with state and local emergency managers, and manages the National Flood Insurance Program and the U.S. Fire Administration. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003.

Last Modified: Thursday, 10-Feb-2005 16:05:09