[StBernard] Landrieu wants to stiffen post-disaster fraud laws

[Westley Annis]

WASHINGTON - Sen. Mary L. Landrieu, D-New Orleans, is co-sponsoring a bill
with Sen. Jeff Sessions, R-Ala., to make it a crime to fraudulently obtain
emergency disaster funds. 
"People who commit fraud in a disaster situation should be prosecuted to the
fullest extent of the law," Landrieu said. "It is equivalent to taking money
directly from the hurricane victims who lost their homes, businesses,
schools and communities. It inhibits our recovery. This legislation puts the
remedies and penalties in place without creating obstacles for those rightly
seeking federal assistance following a disaster." 
  
Landrieu and Sessions originally introduced the legislation last year
following disclosures by the Government Accountability Office that $1
billion, or 16 percent, in hurricanes Katrina and Rita disaster relief were
fraudulent payments made by the Federal Emergency Management Agency. The
legislation passed the House but failed to clear the Senate. Also
co-sponsoring the bill are Sens. David Vitter, R-Metairie, Charles Grassley,
R-Iowa, and John Cornyn, R-Texas. 
  
"After an emergency or disaster like the recent tornadoes that devastated
the city of Enterprise, we should do everything we can to make sure 100
percent of federal relief funds get into the hands of real victims," Sen.
Sessions said. "As a former federal prosecutor, I've been there in the
aftermath of disasters and I've seen such fraud and abuse first hand. Our
resources are not unlimited, and it's critical that we ensure that every
relief dollar goes to legitimate storm victims. It's important that we give
prosecutors the tools they need to protect these victims as well as the
American taxpayer." 
  
In addition to creating a new federal crime related to emergency and
disaster relief fraud, the bill would increase criminal penalties for
engaging in mail or wire fraud following a major disaster or emergency for
up to 30 years in prison upon conviction, which is the maximum penalty for
financial institutions involved in similar crimes.