[StBernard] Senate Passes Sessions-Landrieu Anti-Fraud Bill

Westley Annis Westley at da-parish.com
Wed Dec 5 19:13:22 EST 2007


Senate Passes Sessions-Landrieu Anti-Fraud Bill S. 863 would make disaster
relief fraud a federal crime.



WASHINGTON - The United States Senate today unanimously passed a bill
co-sponsored by Senators Mary L. Landrieu, D-La., and Jeff Sessions, R-Ala.,
that would make it a crime to fraudulently obtain emergency funds in the
aftermath of a disaster.

"It is imperative that emergency disaster funds get to the victims that need
them most," Sen. Landrieu said. "Taking advantage of a disaster situation
for personal gain is inexcusable, and this bill will make certain that those
who break the law will be held accountable. Today we took an enormous step
toward minimizing fraud in the event of future disasters, and I urge the
House of Representatives and the President to follow the Senate's lead and
get this essential legislation enacted as soon as possible."

Sens. Landrieu and Sessions originally introduced the legislation last year
following a Government Accountability Office (GAO) finding that $1 billion,
or 16 percent, of Hurricanes Katrina and Rita individual relief payments
made by the Federal Emergency Management Agency (FEMA) were fraudulently
obtained. The legislation passed the House of Representatives last year but
failed to clear the Senate. Also co-sponsoring the bill are Sens. David
Vitter, R-La., Charles Grassley, R-Iowa, and John Cornyn, R-Texas.

"As a former federal prosecutor, I've been there in the aftermath of
disasters and I've seen such fraud and abuse first hand," Sen. Sessions
said. "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 the new criminalization standard for emergency and disaster
relief fraud, the bill increases criminal penalties for engaging in mail or
wire fraud following a major disaster or emergency. The legislation would
provide for up to 30 years in prison upon conviction, which is consistent
with the maximum penalty for financial institutions involved in similar
crimes.

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