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GAO Reports on Massive Payment Fraud in Katrina Aftermath

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Follow-up to Committee to Review Post Katrina Waste, Fraud, and Abuse, today GAO released the aforementioned report, Hurricanes Katrina and Rita Disaster Relief: Improper and Potentially Fraudulent Individual Assistance Payments Estimated to Be Between $600 Million and $1.4 Billion, full-text GAO-06-844T, and Highlights, June 14, 2006.

  • “We estimate that through February 2006, FEMA made about 16 percent or $1 billion in improper and potentially fraudulent payments to registrants who used invalid information to apply for disaster assistance. Based on our statistical sample, we are 95 percent confident that the range of improper and potentially fraudulent payments is from $600 million to $1.4 billion.”
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