Wednesday, June 14, 2006

More on FEMA Fraud


CNN.com - FEMA hurricane�cards bought�jewelry, erotica - Jun 14, 2006

WASHINGTON (CNN) -- A $200 bottle of champagne from Hooters and $300 worth of "Girls Gone Wild" videos were among items bought with debit cards handed out by FEMA to help hurricane victims, auditors probing $1 billion in potential waste and fraud have found.

The cards -- given to people displaced by Hurricanes Katrina and Rita -- also bought diamond jewelry and a vacation in the Dominican Republic, according to the Government Accountability Office audit.

The GAO uncovered records showing that $1,000 from a FEMA debit card went to a Houston divorce lawyer; $600 was spent in a strip club and $400 was spent on "adult erotica products," all of which auditors concluded were "not necessary to satisfy legitimate disaster needs."

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