Audit Report on Katrina Debit Cards; Some Recipients Swam In
Audit Report on Katrina Debit Cards; Some Recipients Swam In Champagne
A federal audit on the spending proclivities of people issued by FEMA debit cards during the Katrina disaster indicates that some of them also swam in champagne and good things.
Among the survival ranks bought, we find a $ 200 bottle of champagne used as a life-saving device used by the Hurricane Pit, known as Hooters. After consulting the purchase, the company agreed to repay the amount to FEMA.
Other items that are used for emergency cards are the following: A
floating device of dubious effect called diamond jewelry.
A flight of rising waters after a holiday in the Dominican Republic.
Rescue of a divorce lawyer by paying a $ 1 000 legal account.
Dry out at a strip club, where the recovery process requires $ 600.
Recycling with $ 400 adult erotic products.
The auditors came to the conclusion that such purchases “were not necessary to satisfy legitimate disaster needs.”
Greg Kutz, a GAO forensic auditor, said a fraudster in West Virginia received a rent check by using the address of a cemetery in New Orleans. .
Another application, using a vacant destiny as address, found favor in FEMA for payment of $ 2,358 in rent assistance.
The relief organization also paid $ 8,000 and then $ 5,000 more in a double-lease for rent assistance to help a long-haired recipient to survive at a resort hotel in Honolulu.
The GAO also found that FEMA has lost 750 debit cards worth $ 1.5 million.
Due to the debit card debakel, FEMA is self-scheduled to receive federal disaster relief.