Katrina Fraud

The Bush administration is trying to recover
nearly $500 million from people who improperly received federal aid
money intended to help victims of Hurricanes Katrina and Rita --
and that amount may increase further.
The government's newest estimate of improper aid represents $494
million FEMA paid to 134,000 people who were ineligible for the aid
they received.
More than half the money went to people who couldn't prove
residency. Overpayments and duplicate payments account for most of
the remainder.
The amount had exceeded $500 million, but the agency wrote off
nearly $27 million because of appeals or hardship waivers. The $500
million figure would represent nearly $1 of every $10 in government
aid intended to help storm victims.
Congressional investigators determined people provided false
addresses, other people's social security numbers and Gulf Coast
addresses that did not exist. And because of the chaotic situation
and loose controls, investigators say nearly half the 11,000 people
who received emergency debit cards also received FEMA checks.