Foley Woman Pleads Guilty to Katrina Fraud

An Alabama woman has pleaded guilty to a charge she fraudulently received a federally funded homeowner grant following Hurricane Katrina.

Federal prosecutors say 48-year-old Rachel Savage, of Foley, Ala., was living in Slidell, La., when a fire destroyed her home in 2001.

After Hurricane Katrina struck in 2005, Savage applied for a grant from Louisiana's Road Home program and was awarded more than $100,000 to repair the Slidell home. But prosecutors said Savage didn't rebuild the home after the fire and wasn't living there when Katrina hit.

Savage faces a maximum sentence of 10 years in prison following her guilty plea Wednesday to a theft charge. Her sentencing is set for March 28.