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FEMA Battered by Waste, Fraud

Katrina's Aftermath

After some recent disasters, money poured into areas that suffered little or no damage.

September 18, 2005|Sally Kestin | South Florida Sun-Sentinel

The national disaster response agency that mishandled the Hurricane Katrina catastrophe has for years been fraught with waste and fraud.

In five years, the Federal Emergency Management Agency poured at least $330 million into communities that were spared the devastating effects of fires, hurricanes, floods and tornadoes, an investigation by the South Florida Sun-Sentinel has found.

Taxpayers' money meant to help victims recover from catastrophes has instead gone to people in communities that suffered little or no damage, including:

* $5.2 million to Los Angeles-area residents more than 25 miles from the 2003 wildfires for which help was designated.

* $168.5 million to Detroit residents for a 2000 rainstorm that the then-mayor doesn't even remember.

* $21.6 million to Cleveland residents for clothing losses after a 2003 storm that brought less than 1 1/2 inches of rain.

Last year, the newspaper reported fraud and waste in federal disaster aid in Florida, when FEMA distributed $31 million in Hurricane Frances relief to Miami-Dade County residents who experienced no hurricane conditions.

U.S. senators and federal auditors, reacting to those reports, feared similar problems had occurred in FEMA-declared disasters throughout the United States.

The newspaper examined 20 of the 313 disasters declared by FEMA from 1999 through 2004, selecting cities where the agency's inspectors said they had encountered large-scale fraud. Of the $1.2 billion FEMA paid in those disasters, 27% went to areas where official reports showed minor damage or none, the Sun-Sentinel found.

"It's so disturbing because we have urgent needs to help individuals who truly are the victims of disasters," Sen. Susan Collins (R-Maine) said. "I think it erodes public support for disaster assistance when there is a pattern of wasteful and abusive spending."

As chairwoman of the Senate Homeland Security and Governmental Affairs Committee, Collins investigated FEMA's Miami-Dade payments and is leading a congressional inquiry into the federal response to Katrina.

"Disaster assistance is provided at the specific request of a governor and we are constantly evaluating our programs," FEMA spokeswoman Nicol D. Andrews said in an e-mail to the paper. "While always mindful of the generosity of the nation's taxpayers, FEMA's first priority remains the health and safety of disaster victims."

In impoverished neighborhoods from California to the Carolinas, the newspaper found the same patterns. Residents call FEMA assistance "free money," "easy money" and "mobility money."

Scamming FEMA is widely known and openly discussed.

In Los Angeles after the 2003 wildfires in surrounding areas, smoke was the key. Tell FEMA that smoke ruined your TV, got in your clothes or spoiled the paint job on your car, residents said.

"All you've got to do is say something was damaged," said Tasha Williams, a 26-year-old mother of three and tenant of Imperial Courts, a public housing development in Watts. "It's free money."

FEMA gave out checks, some for almost $9,000, to Los Angeles-area residents.

"If it had been our program and the same thing had occurred, I would have started an investigation, because clearly something went haywire," said Dallas Jones, former director of the California Governor's Office of Emergency Services. Now a consultant, Jones served as California's coordinator for the wildfires, working with FEMA. He said he had expected less than $200,000 in FEMA claims in Los Angeles, not $5.2 million.

In Long Beach, many residents of a low-rent apartment building got money after one discovered the government would pay for furniture soiled by soot when windows were left open.

"The whole thing is a surprise to me," said Mayor Beverly O'Neill of Long Beach, where 1,922 residents received $1.7 million from FEMA for the wildfires. "There were no fires in Long Beach.... Nobody said anything about this."

In Cleveland's recreation centers, barbershops and day-care centers, residents said people hauled old clothes and furniture into their basements and told FEMA the items were damaged by flooding from the 2003 storm. City officials documented 73 homes with minor damage, yet the federal government gave 28,500 Cleveland-area residents $41.4 million.

"We didn't have much flooding in the city," said Tom Marsalis, deputy commissioner of Cleveland's Division of Water Pollution Control. "Basically, that was a normal storm for us."

Julie Cobb, 37, whose southeast Cleveland neighborhood received $6.6 million from FEMA, said "everybody was talking about it on the bus."

"All you had to do was tell FEMA stuff was ruined and they'd send you a check," Cobb said. "If you had a little water in the basement, you could throw some stuff down there and get some money for it."

In Baton Rouge, La., FEMA was a familiar and welcome sight long before the Louisiana capital was inundated with Katrina evacuees. In 2002, Hurricane Lili damaged small towns on the bayous but spared Baton Rouge, about 70 miles inland.

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