FEMA Urges Residents to Beware of Scam Artists after Wilma
Dont become a victim a second time, officials warn
Release Date: November 8, 2005
Release Number: 1609-017
» More Information on Florida Hurricane Wilma
ORLANDO, Fla. -- The Department of Homeland Security's Federal Emergency Management Agency is urging residents affected by Hurricane Wilma to be alert and report potential fraud in the aftermath of the hurricane and during rebuilding efforts. People who intentionally try to defraud the government are taking money away from those who are truly in need. FEMA is working hard to ensure taxpayer dollars go only to those people who sustained legitimate losses.
"We have no tolerance for fraud - not against FEMA, not against the American taxpayer, not against our partners and certainly not against the victims themselves," Federal Coordinating Officer Justin DeMello said. "We want to see anyone who tries to take advantage of the unfortunate circumstances following a disaster prosecuted to the fullest extent of the law."
Those who suspect anyone - a contractor, inspector, disaster victim or someone posing as any of these - of committing fraudulent activities, should call the FEMA Fraud Hotline at 1-866-720-5721. Individuals reporting suspicious activity do not have to give their names. The Florida Attorney General's fraud hotline is 1-800-966-7226.
"We are working hard to ensure those who suffered as a result of Hurricane Wilma receive the assistance they need," State Coordinating Officer Craig Fugate said. "All Floridians should remain vigilant and report questionable contractor activities so that victims of the hurricane do not become victims of fraud."
A team from the U.S. Department of Homeland Security's Office of the Inspector General is on the ground, ready to investigate and work with law enforcement on any fraud allegations raised.
False disaster claims or theft of government property, prosecuted by the Justice Department, are felonies carrying maximum penalties of 10 years imprisonment or a $250,000 fine - or both. FEMA's Office of Inspector General routinely audits individuals, state and local governments and nonprofit organizations that receive FEMA disaster-recovery funds. The audits are independent assessments to determine whether recipients spent the funds according to federal regulations and FEMA guidelines. Usually audits question expenditures for ineligible items or instances of duplicate payments from insurance companies or other sources.
To safeguard against fraud, officials recommend the following precautions to those in hurricane-affected areas:
Ask for ID. If someone represents themselves as a federal employee, such as an inspector, but does not produce identification, residents are urged to ask to see it. A FEMA or Small Business Administration shirt or jacket is not absolute proof of someone's affiliation with the government. Federal employees carry official photo identification and applicants may receive a visit from more than one inspector or verifier.
Safeguard personal information. Do not give personal information such as social security and bank account numbers to individuals claiming to be affiliated with the federal government. FEMA inspectors never require this information. A social security or bank account number is requested during the first phone call to the agency's teleregistration line. On any follow-up calls a FEMA representative may ask for the last four digits of your social security number.
Under no circumstances are FEMA or SBA representatives allowed to accept money. If someone claiming to be a federal employee or federal contractor attempts to collect money for their help, report the person and their vehicle number to your local police department.
FEMA inspectors assess damage, but do not hire or endorse specific contractors to fix homes or recommend repairs.
Use care when hiring contractors.
Do research on contractors. To check on a contractor's licensing status in the state of Florida, consumers can go to www.myfloridalicense.com. You may also check with the local Better Business Bureau, homebuilders' association or trade council to see if the contracting firm has any unanswered complaints against it. Be suspicious of anyone who offers to increase the amount of your disaster damage assessment
Ask for proof of insurance. If a contractor is uninsured, you may be liable for accidents on the property. Make sure the contractor has both disability and workers' compensation insurance.
Get it in writing. Ask for a written estimate and check to make sure it includes all the work you expect to have done, as well as taxes and other fees. Keep in mind that some contractors charge for an estimate. Once you decide to use a particular contractor, ask for a written contract, including all tasks to be performed as well as associated costs, a timeline and payment schedule and who is responsible for applying for necessary permits and licenses. Never sign a blank contract.
Ask for a written guarantee. It should state what is guaranteed, who is responsible and how long the guarantee is valid.
Do not make advance payment in cash. Pay by check in order to keep a record and avoid double charges. Legitimate contractors normally do not require more than one-third of the total charges as a down payment.
If you suspect an inspector or contractor, or someone who may be posing as one, of committing fraudulent activities, call the FEMA Fraud Hotline at 1-866-720-5721. You do not have to provide your name. The Florida Attorney General's fraud hotline is 1-800-966-7226.
The State Emergency Response Team (SERT) is a collaboration of Florida's state agencies led by the state coordinating officer. SERT's mission is to ensure that Florida is prepared to respond to emergencies, recover from them, and mitigate their impacts. Visit www.floridadisaster.org for the latest information on the hurricane relief efforts.
Last Modified: Wednesday, 09-Nov-2005 09:02:54