WASHINGTON – U.S. Sen. Jeff Sessions (R-AL) today introduced legislation that would make it a crime to fraudulently obtain emergency disaster funds.
Sessions introduced the bill following recent disclosures by the Government Accountability Office that $1 billion, or 16 percent, in Hurricanes Katrina and Rita disaster relief were fraudulent payments. The House of Representatives passed its version of the bill earlier this week.
In addition to the creation of 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. 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.
“It’s disheartening that there was so much fraud associated with disaster relief following Hurricanes Katrina and Rita, but it’s not surprising,” Sessions said. “As a former federal prosecutor, I’ve been there in the aftermath of a hurricane 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.”
Sessions was U.S. attorney in Mobile between 1981 and 1993.
A recent GAO report found a host of fraudulent payments in connection with Katrina and Rita disaster relief, such as claims for properties that did not exist and using invalid Social Security numbers to obtain payments.
The bill will be referred to the Senate Judiciary Committee. Sessions is a member of the panel.
