Sifter

Disaster deadbeats

In the first three months after Hurricane Katrina, the federal government doled out some $5.4 billion in cash aid to disaster victims. But according to a Government Accounting Office (GAO) report, the government’s “weak or non-existent controls” over disbursements allowed opportunists and con artists to falsely claim much of the money. In one case, a group of 17 apparently related individuals filed 34 disaster aid claims using phony addresses and Social Security numbers, eventually bilking taxpayers for $103,000. Sixty percent of the 2.5 million aid registrants underwent no identity check at all. For 5,000 of those lucky enough to receive one of the 11,000 federal debit cards issued containing $2,000 each, it was a double jackpot, as they received $2,000 checks a few days later. While card recipients spent $8.3 million on food, clothing and department store purchases, $24.3 million was spent in untraceable cash withdrawals.

Below, some of the purchases made with federal disaster funds. Source: www.gao.gov.

Purchases that Did Not Appear Necessary to Satisfy Immediate Emergency Needs

Vendor Location Nature of Transaction Amount

Elliot’s Gun Shop Jefferson, LA .45 caliber pistol $1,300

D Houston Houston, TX Gentlemen’s club $1,200

Friedman’s Jewelers Plano, TX Diamond engagement ring $1,100

Argosy Casino Baton Rouge, LA 7 ATM withdrawalswithin one day at a gambling institution $1,000

Tim Fanguy Bail Bonds Houma, LA Partial bail bond payment $1,000

Department of Public Safety Baton Rouge, LA Payment of traffic violations for driver’s license reinstatement $700

Cat Tattoo Addison, TX Tattoo on arm $450

Swedish Institute Irving, TX Massage parlor $400

Tiger Beer and Wine Dallas, TX Alcoholic beverages $200

Condoms To Go Dallas, TX Adult erotica products $150