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Join in on this Discussion and see the pictures. Click here-> : Katrina Audit Shows Fraud


DarkAngelKamui
07-19-2006, 08:36 AM
lol, oh this is rich... And here I thought the refugees were the only ones wasting taxpayer money....

http://news.yahoo.com/s/ap/20060719/ap_on_go_ot/hurricanes_waste;_ylt=An2eCeuE8HJLfp8f757TUDwGw_IE ;_ylu=X3oDMTA3OXIzMDMzBHNlYwM3MDM-

WASHINGTON - The Homeland Security Department wasted hundreds of thousands of dollars last year on iPods, dog booties, beer-making equipment and designer jackets, congressional investigators have concluded.

More than 100 laptop computers and a dozen boats also bought by Homeland Security employees are missing, the investigators found.

Poor training, lax oversight and rampant confusion over what employees are allowed to buy with government-issued purchase cards left Homeland Security "vulnerable to fraud, waste and abuse," according to a draft report by the Government Accountability Office, Congress' investigative and auditing arm.

The report was to be released Wednesday by a Senate panel that oversees the department.

Senators said more than 10,000 Homeland Security employees carry purchase cards for business-related expenses — with a spending limit that was raised to $250,000 for emergencies after Hurricane Katrina hit last Aug. 29. Aides said the audit covered expenses for a five-month period both before and after Katrina.

But investigators found that employees received scant training on how to use the cards, were given little or lax supervision and were told to follow spending guidelines that differed among the 22 agencies that make up the department.

The department spent $435 million with the purchase cards in the 2005 budget year, compared to $296 million in 2004, Homeland Security spokesman Russ Knocke said Tuesday evening. But he said only a fraction of the expenses were improper, noting that the department has disciplined about 70 employees amid 1.1 million purchases.

"Comparatively, we're talking about a small number of bad apples," Knocke said.

Among the expenses that investigators described as abusive or otherwise questionable:

_More than 2,000 sets of dog booties, costing $68,442, that have sat unused in storage since emergency responders decided they were not suited for canines assisting in Gulf Coast recovery efforts.

_Three portable shower units for $71,170 from a contractor who investigators said overcharged the government. Customs and Border Protection agents could have gotten similar showers for nearly a third of the price — and faster.

_12 Apple iPod Nanos and 42 iPod Shuffles, worth $7,000, for
Secret Service "training and data storage." Because the Shuffles cost less than $300, the Secret Service said they were not required to track them to ensure they were used properly.

_37 black Helly Hansen designer rain jackets, costing nearly $2,500, for use in a firing range that the Customs and Border Protection purchaser later acknowledged shuts down when it's raining.

_Conference and hotel rooms at a golf and tennis resort at St. Simons Island in Georgia, worth $2,395, for training 32 newly hired attorneys when they could have used a nearby federal law enforcement training center.

_A beer brewing kit and ingredients for more than $1,000 for a Coast Guard official to brew alcohol while on duty as a social organizer for the
U.S. Coast Guard Academy. "The estimated price for a six-pack of USCG beer was $12," the investigators noted, adding: "Given that the six-pack cost of most beers is far less than $12, it is difficult to demonstrate that the Academy is achieving cost savings by brewing its own beer."

Investigators also noted that Customs and Border Protection wasted up to $464,586 by buying meals-ready-to-eat over the Internet instead of contracting through the Pentagon, as is standard procedure. And they found that the Federal Emergency Management Agency cannot locate 107 laptops, 22 printers and two GPS units worth $170,000. FEMA also cannot find 12 of 20 boats the agency bought for $208,000.

Knocke, the Homeland Security spokesman, said the department will begin enforcing new spending guidelines in the next several weeks that should eliminate much of the confusion and make sure buys are strictly supervised. Violators could have their cards taken away, be forced to repay expenses and face disciplinary action, he said. "We take very seriously our responsibility to be good stewards of taxpayer dollars," Knocke said.

The senators who ordered the investigation — Sens. Susan Collins, R-Maine, and
Joe Lieberman, D-Conn. — described Homeland Security as negligent in preventing the shopaholics among its ranks. The two lead the Senate's Homeland Security and Governmental Affairs Committee.

Homeland Security "left the door wide open for these abuses," Collins said.

Added Lieberman: "That is hard to believe."

$100T2
07-19-2006, 02:27 PM
Why am I not surprised?

DarkAngelKamui
09-15-2006, 10:23 AM
http://mensnewsdaily.com/2006/09/14/doj-to-prosecute-thousands-for-katrina-fraud-and-corruption/

"DOJ to Prosecute Thousands for Katrina Fraud and Corruption"

The US Justice Department has charged more than 400 government and charity workers for illegally benefiting from Hurricane Katrina and the ensuing flooding, according to their report obstained by the National Association of Chiefs of Police.

“Disaster relief agencies have reported to law enforcement that they have identified thousands of questionable or possibly fraudulent payments to purported hurricane victims,” the DOJ report stated.

A multi-agency fraud task force posted in Baton Rouge, Louisiana, has received more than 6,500 complaints or tips for investigators to pursue. The tips are coming from Katrina victims who are witnessing fraud by government officials, charity workers, and disaster recipients of financial or material assistance.

The effect of this report is so strong that ineligible recipients of aid have voluntarily returned $18.2 million to the Federal Emergency Management Agency and the American Red Cross, according to federal prosecutors working on these fraud cases.

The majority of the cases involved people attempting to obtain assistance from FEMA or the Red Cross. There were also many cases of identity theft, procurement fraud and public corruption which are being investigated.

While prior reports and media stories addressed fraud committed by supposed Katrina victim, this new report reveals that the task force found a “particularly distressing pattern of criminal activity” involving government and charity insiders. The accused include employees or contractors with FEMA, the Army Corps of Engineers, the Louisiana Department of Labor and the Red Cross.

rotary_full
10-13-2006, 02:05 PM
I had a feeling that this was coming

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