White Collar Crime

Hurricane Katrina Fraud

Tragically, even a natural disaster such as Hurricane Katrina can lead to scams, cons and frauds. Most criminals are opportunists who actively look for a way to profit illegally, and to the detriment of others. Following the devastating hurricane, unscrupulous individuals attempted to commit fraud using various methods.

False claims

Perhaps the most common type of fraud that was committed following Katrina was the false claim. Government agencies such as the Federal Emergency Management Agency (FEMA) provided monetary and other forms of relief to victims who had suffered losses such as damaged or destroyed homes. Claims came in from all over the United States from people who reported the loss of a home or damage to personal property. While many of these claims were valid, con artists have sent in many false claims in an attempt to receive government aid. Individuals filed for relief who did not actually live in an area that was affected by the storm, or for homes which were not actually damaged in any way.

Perpetrators of this crime are subject to paying restitution for any money or assistance they received, other large fines and even time in prison.

Donations

After the hurricane, people from all over the world pitched in to send donations of money, canned goods, clothing and other necessities to the victims who lost homes, jobs and personal belongings. Unfortunately, many of the charitable organizations that accepted these donations were not actually sending what they received to the people who were in need. Instead, the individuals who had established these phony charities were keeping the donations for themselves.

This type of fraud occurs after most any catastrophic event. Groups claiming to be charitable organizations form immediately after a disaster, collect what they can and then disappear. The best way to avoid these scams is to only give contributions to reputable charities that have a history of helping those in need and providing disaster relief.

Contractors

Many victims who had property damaged hired contractors to make repairs or rebuild completely. However, con artists claiming to be qualified contractors defrauded these people by taking their money and vanishing. The victims would then be left with the damages to their homes, and no more money to have them repaired.

Before hiring any contractor, make sure they are fully licensed and have an established business in your area. Never pay anyone who shows up at your home offering to make repairs when you have not requested them to. People going door to door and offering repair work will commonly ask for money up front and never provide any services or repairs.

Hurricane Katrina Fraud Task Force

The widespread problem of fraud following Hurricane Katrina led to the founding of the Hurricane Katrina Fraud Task Force. This group was put in place to investigate fraudulent cases involving charities, insurance claims and identity theft. The group is made up of members of the FBI, United States Secret Service, Department of Homeland Security and several other governmental agencies.

While there are many charitable organizations and individuals who have been dedicated to helping victims of Hurricane Katrina, the sad fact remains that there are some who purposely take advantage of those victims. People who were affected by the storm should take precautions to watch out for potential scams, and individuals wishing to help out should be careful to make sure they are sending their donations to reputable organizations that are committed to providing disaster relief.