FEMA Expands Investigation Into Misleading Telemarketing Scams And Fraudulent Use Of Assistance Program 

Schemes to Defraud Taxpayers will not be Allowed to Derail Aid to 9/11 Victims

Release Date: November 21, 2002
Release Number: 1391-174

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New York, NY -- The Federal Emergency Management Agency (FEMA) announced today that it is intensifying its investigation of companies engaging in widespread fraud and misleading telemarketing scams related to the Individual and Family Grant (IFG) program. In addition, inspectors are being deployed to visit applicants who have received assistance through the program to ensure that the funds provided were used for the intended purpose.

Investigators will seek identification, proof of residency, and verification that the air quality equipment was purchased.

"We are very concerned that all of the misinformation and misrepresentations are causing victims who most need federal help to be 'crowded out' by thousands of people seeking the money under false pretenses," said Brad Gair, federal recovery officer for FEMA.

Numerous residents of the city have notified FEMA over the past few weeks that they are receiving phone solicitations from callers purporting to be FEMA representatives or "calling on behalf of FEMA." In some cases, these representatives succeed in securing a social security number and/or credit card information from the resident. In other cases, various church groups have been targeted by these telemarketers who tell clergy and church members that they will "rebate" to the church a fixed dollar amount for each air quality item purchased.

While applications are still being accepted through the Nov. 30 timeframe so that legitimate victims can apply for help, blatant abuse of the program has also prompted FEMA to request a full-scale investigation into the matter by its Inspector General (IG). Telemarketing schemes, mass mailers, flyers and individuals representing themselves as part of FEMA are circulating throughout New York City's five boroughs.

FEMA's IG has increased the number of special agents pursuing suspected fraudulent activity. In addition, the IG continues to direct cases of suspected fraud to the United States Attorney's Office and the Manhattan District Attorney's office. In one instance, FEMA's IG agents directed over 75 applicant cases to the prosecuting authorities for potential fraudulent use of funds obtained through the IFG assistance program.

"Whether they know it or not, people are being misled about the purpose of this program. These scam artists are spreading misinformation which has prompted people to seek funds despite not having a legitimate need for this equipment," said Gair.

As the Nov. 30 registration deadline approaches for the IFG program, recovery officials point out that "opportunists and fast-buck artists" have intensified their efforts to sell air quality equipment to unsuspecting New Yorkers. The latest misinformation includes a rumor about a wealthy millionaire that had left millions to the city's poor Spanish population. The story encourages residents to contact FEMA to claim their share, prompting individuals to swarm FEMA's Applicant Assistance Center and jam teleregistration phone lines.

While reimbursement for air purifiers, air filters, HEPA vacuums and the repair or replacement of damaged air conditioners is available to qualified residents of the five boroughs under the IFG program, recovery officials stress that reimbursement is available only by registering through the FEMA toll-free number, 1-800-462-9029. Registration lines are open Monday through Saturday with special extended hours, 7 a.m. to 11 p.m. Phone lines will remain open until 12 midnight on Nov. 30, the final day of registration for the IFG program. The speech- or hearing-impaired should call 1-800-462-7585.

Only when the applicant has called FEMA and received an informational letter from the IFG program should he or she proceed in purchasing disaster-related air quality equipment. Recovery officials further add that claims by telemarketers as "authorized" or selling "FEMA-approved equipment" are completely false. FEMA does not endorse specific companies or equipment. Those New Yorkers who suspect that they have been targeted by unscrupulous vendors should call the FEMA Fraud Hotline, 1-800-323-8603.

Last Modified: Monday, 07-Jul-2003 16:00:01