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WASHINGTON D.C. – It’s a case of Katrina fraud that prosecutors say just keeps getting bigger– as much as $400,000 stolen from the Red Cross, and so far, 49 people under indictment.
U.S. Attorney Scott McGregor says that in the coming weeks and months, the total number of indictments may double.
It all started with an unusual number of Katrina evacuees applying for assistance — 2,000 miles away, in Bakersfield, California …
“We did question how so many people got to Bakersfield, Calif., from the states affected by Katrina. That was the first clue we had,” says Steve Cooper, Red Cross senior vice president.
It turns out they weren’t evacuees, but rather subcontracted employees for Spherion Staffing, who were manning the Red Cross call center in Bakersfield. The contractors were hired to speed financial assistance to Katrina victims through Western Union.
“The contract employees working at the call center would call their buddies or their relatives and say ‘Here’s a PIN number, get down to the Western Union and collect the money.’ It’s that simple,” says McGregor.
The Red Cross has now distributed some $1.4 billion to between 3 and 4 million Katrina evacuees.
More to follow …
Lawmakers criticize lack of coordination with local groups in disaster
NEW YORK (AP) Dec. 14, 2005 — American Red Cross President Marsha Evans announced her resignation because of friction with the board of governors, shortly before witnesses and lawmakers at a congressional hearing assailed the charity’s response to Hurricane Katrina.
Red Cross spokesman Charles Connor said the board was not unhappy with Evans’ handling of the hurricane crisis “but had concerns about her management approach, and coordination and communication with the board.” It was the second time in three years that such feuding led to a leadership change after a national disaster.
At the hearing in Washington, lawmakers said the Red Cross’s uneven response to Katrina calls for major changes in how the charity coordinates with local groups, handles its finances and distributes aid to the disabled.
Jack McGuire, executive vice president of the charity’s Biomedical Services, was named to serve as interim president while a search for Evans’ permanent successor is conducted.
A former Navy rear admiral who previously ran the Girl Scouts of the USA, Evans took over at the Red Cross in August 2002 as the organization was shaking off criticism of how it handled some donations sent in response to the Sept. 11, 2001, terror attacks.
“Treason doth never prosper: what’s the reason?
For if it prosper, none dare call it treason.”
▼▼▼ READ MY DIARY ▼
I know that out of 280 million the numbers are small, but WHAT THE HECK IS WRONG WITH AMERICANS? I can’t believe that people in our country are so disgusting as to steal money donnated to help these helpless victims of the hurricanes.
I hope they all go to jail!
Thanks for reporting this Oui.
People don’t want to believe anyone copuld do such a thing but it has happened before with the Red Cross. During the wildfires in San Diego no one seemed to know where the money went. I gave to the Red Cross after Katrina because I had hoped it was just mismanagement on the local level in regards to San Diego. NEVER again.
The International Committee of the Red Cross is a great organization with a long tradition.
The American Red Cross, however, has become another tool in the republicans’ massive tool box. Look at the recent Presidents and Chairs of the ARC:
Elizabeth Dole, President (1991-1999) (no bio required, I presume)
Bernadine P. Healy, President (1999-2001)
From NYT: Sweeping into the room, Healy sank into a cranberry-colored chair and exhaled. Healy is a fine-boned, exquisitely tailored woman who, with her crisp blond coif and colorful blazers, looked more like the Republican senator she once aspired to be than a cardiologist who ran a humanitarian organization.
Marsha (Marty) Johnson Evans, President (2002 – just resigned)
Evans donated $500 to the Republican National Committee in 2004.
Bonnie McElveen-Hunter, Chair (2004- )
Bonnie has also served on the National Finance Committee for George W. Bush and as finance chairman for Elizabeth Dole’s presidential campaign.
We saw what incompetence and cronyism did to FEMA – the same is in process in the ARC.
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Many of those captured in the context of what is often referred to as the global war on terror are being held at US detention facilities in Bagram in Afghanistan and in Guantanamo Bay, Cuba. Two persons are furthermore detained in Charleston, USA. The ICRC has been regularly visiting these facilities.
The ICRC has also repeatedly appealed to the US authorities for access to people detained in undisclosed locations.
Strategic Plan to Integrate Red Cross in National Homeland Security
Presentation before the Gilmore Commission, November 2003 (PowerPoint Presentation – 342 KB)
NEW ORLEANS Sept. 3 — Katrina Disaster
“The Homeland Security Department has requested and continues to request that the American Red Cross not come back into New Orleans,” said Renita Hosler, spokeswoman for the Red Cross.
Though frustrated, Hosler understood the reasons. The goal is to move people out of an uninhabitable city, and relief operations might keep them there. Security is so bad that she fears feeding stations might get ransacked.
“It’s not about fault and blame right now. The situation is like an hourglass, and we are in the smallest part right now. Everything is trying to get through it,” she said. “They’re trying to help people get out.”
● Diary – NG | DHS Orders :: Red Cross Not Allowed In NOLA
● 911 Review and FEMA Update :: meant for ask …
“Treason doth never prosper: what’s the reason?
For if it prosper, none dare call it treason.”
▼▼▼ READ MY DIARY ▼
My understanding also is that the Board is made up of at least 50 people..wonder what they get paid for sitting on the Red Cross board? Having a 50 person board is just ridiculous.
I saw this mess, too. Recommended.
The International Red Cross, people, ain’t nothing like the beast we have now in the American Red Cross. These guys are absolutely not to be trusted.
No wonder Evans was forced to resign. She probably saw some stuff that went down and was ill-prepared for the shock that was Katrina.
is where I live or at least about 25 minutes away..lovely isn’t it this story. Certainly not surprising but it is depressing. The story been known locally for quite some time-so nice to see we hit national news here from our own little part of bible belt Ca.