FEMA Announcements
FEMA Fraud: FEMA Takes Fraud Seriously in All Forms
By Federal Emergency Management Agency (FEMA)
Sep 8, 2006, 08:06

FEMA Takes Fraud Seriously in All Forms

Release Date: September 8, 2006
Release Number: 1606-248

» More Information on Texas Hurricane Rita

AUSTIN, Texas -- The Federal Emergency Management Agency (FEMA) has so far identified at least 26,000 applicants who allegedly filed false claims for federal disaster assistance following the 2005 hurricanes. FEMA's recoupment process is underway to recover more than $114.6 million associated with these claims.

After the 2005 hurricane season, FEMA re-examined ways to prevent abuse of its disaster assistance programs. Additional safeguards were implemented to prevent disaster relief fraud by individuals who haven't suffered any disaster-related losses or damages but who apply for assistance.

"We have aggressively overhauled our processes to further eliminate errors and identify fraudulent abuse," said E.C. "Butch" Smith, director of the Texas Transitional Recovery Office for FEMA in Austin . “In addition to our more stringent controls and safeguards, we have received reports from evacuees that they have seen people using FEMA money for purposes other than what it was intended. When such activity is documented, we vigorously prosecute offenders.”

Anyone who is aware of fraud, or suspects fraud might be taking place, is urged to report it to their local law enforcement, the Attorney General's Office of Consumer Protection at 800-337-3928 , FEMA's Disaster Fraud Hotline for items related to Hurricane Katrina and Rita, 866-720-5721 , or the Fraud Detection line, 800-323-8603 , for items unrelated to the hurricanes.

In addition to people who fraudulently apply for disaster assistance, there are unscrupulous contractors and inspectors who prey on disaster victims needing repair work to their homes or businesses.

Individuals should be aware of the following:

• When beginning repairs to damaged structures, never sign a blank contract. Get any agreement in writing, and make sure the contract covers all the work to be accomplished, all other costs, a payment schedule and who is responsible for obtaining necessary permits. Check with local governmental zoning boards for code regulations.
• Don't give anyone an advance payment in cash, and make sure your payment schedule is clearly spelled out in your contract.
• Be suspicious of anyone who offers to inflate the amount of your disaster damage assessment.
• FEMA does not endorse individual loan companies or contractors, so be wary of any business that claims it has governmental support or endorsement.
• It is always wise to read carefully any document, application, voucher or other paper related to disaster assistance. If you have any questions about the legitimacy of a document claiming to come from FEMA, call the Helpline at 1 -800-621- FEMA (3362).

FEMA reminds the public that no legitimate FEMA or other government inspector, telephone operator or staff will ever ask a disaster assistance registrant for money, their bank account PIN number, or other compensation for helping with the application process. If applicants want their assistance funds to be electronically deposited into their bank account, FEMA operators will need a bank account number and a bank routing number.

This information should be provided only when a call is placed by an applicant to the FEMA teleregistration number at 1-800-621-FEMA (3362) or by logging onto www.fema.gov. If someone gives you a form they claim is for FEMA, report it immediately to FEMA's Disaster Fraud Hotline listed above.