Cheating the System Estimated $166 million in overpayments for aid. Estimated $166 million in overpayments for aid. Prosecutors say most of the suspects.

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Presentation transcript:

Cheating the System Estimated $166 million in overpayments for aid. Estimated $166 million in overpayments for aid. Prosecutors say most of the suspects got FEMA checks for $2,000 or more. Prosecutors say most of the suspects got FEMA checks for $2,000 or more. 900,000 out of 2.5 million that received aid were based on duplicate or invalid social security numbers, or false addresses and names. 900,000 out of 2.5 million that received aid were based on duplicate or invalid social security numbers, or false addresses and names.

Cheating the System There was little or no verification of the names addresses or social security numbers of applicants registering by phone or the internet for the $2,000 in aid. There was little or no verification of the names addresses or social security numbers of applicants registering by phone or the internet for the $2,000 in aid. Nearly half of the 11,000 people that received debit cards as payments Nearly half of the 11,000 people that received debit cards as payments

Fraud Suspects Making It Right?  FEMA and the red cross reported receiving more that 8 million in returned funds, along with letters confessing to fraud or seeking to arrange payment plans to pay back the money.

Mistakes made by the Government The Department of Homeland Security, which includes FEMA, acknowledges the failures and says it is conducting its own investigation and evaluation of the rescue efforts. Senate Democrats investigating FEMA's response to Hurricane Katrina say they have documented nearly 30 instances in which federal and local government officials gave early reports on Aug. 29 that levees had broken and that New Orleans was flooding, including one report at 8:30 a.m. the day of the storm.

Do the mistakes made by the Government justify fraud? FEMA had slow reaction time getting supplies and aid to victims which probably contributed to the lack organization and communication for the relief efforts If FEMA would have been organized and had a system for checking people’s information there may not have been as big as a fraud issue, and also probably would saved a lot more lives.

Do the mistakes made by the Government justify fraud? Do the mistakes made by the Government justify fraud? In what ways do you think FEMA could have prevented the fraud problem? In what ways do you think FEMA could have prevented the fraud problem?

If you were in their position would you have committed fraud?