October 19, 2005
Major Katrina Fraud
The Wall Street Jrl reports here of 15 indictments in a cases alleging fraud resulting from Katrina recovery efforts. Some of the individuals who were charged worked for Spherion Corp. a company that had an agreement with the Red Cross to assist with Katrina recovery efforts. Obviously, the Red Cross and Spherion are not happy about the alleged criminality occurring under their roof. It seems that the money was not getting to the victims, but rather landing in the hands of some relief workers. Earlier the USA for the Eastern District of California reported in a press release that individuals working at call centers obtained claim information and then used the information to improperly obtain payments. Considering the amount of money needed in this relief effort and the vast number of people necessary to disburse these funds, incidents like this are likely to occur. They are sad.
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