FEMA: No ‘widespread fraud’ in Florida hurricane aid

The Federal Emergency Management Agency disputed allegations of rampant fraud and abuse with regard to disaster aid that went to hurricane victims in Florida, and said it welcomed a Senate investigation into the matter.

The Senate Homeland Security and Governmental Affairs Committee announced last week that it plans to investigate reports of fraud and waste in the distribution of FEMA aid to Florida and other states hit by hurricanes last year.

Daniel Craig, FEMA's director of recovery, said the agency has found no evidence of "widespread" abuse and looks forward to the investigation.

"Unfortunately, in some instances, individuals may seek to take advantage of the assistance meant for those who have suffered losses from disasters," Craig said in a four-page statement. "To minimize this risk, we constantly monitor applications for fraud and take reports of suspected fraud very seriously. Thankfully, there's currently no evidence of widespread fraud, waste or abuse of FEMA's disaster assistance program in Florida."

He said FEMA will recover any money that was erroneously disbursed.

The Fort Lauderdale Sun-Sentinel reported several discrepancies related to the aid, such as tens of millions of dollars given to thousands of residents who were not touched by disaster, and reported that federal funds were used to purchase rooms full of furniture, new wardrobes and thousands of TVs and appliances. The government also paid for new cars, dental bills and a funeral in Miami-Dade County, even though the county's medical examiner recorded no storm-related deaths, according to the paper.

Sen. Bill Nelson, D-Fla., has charged that FEMA poured its money "down a rathole" and asked the Senate committee to conduct the investigation.

In letters to the committee, Nelson noted that Congress approved $8.5 billion in aid after multiple hurricanes hit Florida last year.

Craig said FEMA inspectors conduct thorough assessments before aid is disbursed, and the agency continuously looks for any signs of fraud or abuse.

"We've found that the majority of concerns raised regarding assistance provided to individuals in Florida have logical explanations and are not representative of widespread fraud," Craig's statement read.