Any wonder why I won't give sometimes?
50 charged over Red Cross scam
Date: December 28 2005
By Washington
NEARLY 50 people have been indicted over a scheme that bilked hundreds of thousands of Red Cross dollars intended for hurricane Katrina victims.
According to federal authorities, 17 of the accused worked at the Red Cross claim centre in Bakersfield, California, which handled calls from storm victims across the country, and authorised cash payments to them.
The others charged were the workers' relatives and friends.
The scam came to light when Red Cross officials noticed a suspiciously high number of people picking up Red Cross money at Western Union agencies near the Bakersfield centre, even though few evacuees were in the area.
Forty-nine people in the area have been indicted in the past three months for filing false claims. More indictments were expected soon, said Stanley Boone, an assistant US attorney.
The incident reveals a sometimes chaotic system that the Red Cross cobbled together after the disaster. Many had fled their homes with only the clothing they wore and what they could carry. Before winding up the program two weeks ago, the Red Cross gave out $US1.3 billion ($A1.8 billion) to evacuees in more than 1.4 million households.
It was the charity's largest cash program yet — double the amount distributed after the September 11 terrorist attacks.
"We went in knowing that we had a great need, almost an incomprehensible need," Michael Brackney, manager of the Red Cross' client services program, said.
But charity experts said that in this era, when a highly visible disaster could attract hundreds of millions of dollars, relief groups were under enormous pressure to give the money away as quickly as possible or risk the ire of donors.
After the September 11 attacks, when the Red Cross was criticised for trying to use some of the money to prepare for future disasters, donors are not keen to divert funds to other causes, say those who assess charitable giving. But that presents challenges to charities that usually are careful to parcel out aid based on need.
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Date: December 28 2005
By Washington
NEARLY 50 people have been indicted over a scheme that bilked hundreds of thousands of Red Cross dollars intended for hurricane Katrina victims.
According to federal authorities, 17 of the accused worked at the Red Cross claim centre in Bakersfield, California, which handled calls from storm victims across the country, and authorised cash payments to them.
The others charged were the workers' relatives and friends.
The scam came to light when Red Cross officials noticed a suspiciously high number of people picking up Red Cross money at Western Union agencies near the Bakersfield centre, even though few evacuees were in the area.
Forty-nine people in the area have been indicted in the past three months for filing false claims. More indictments were expected soon, said Stanley Boone, an assistant US attorney.
The incident reveals a sometimes chaotic system that the Red Cross cobbled together after the disaster. Many had fled their homes with only the clothing they wore and what they could carry. Before winding up the program two weeks ago, the Red Cross gave out $US1.3 billion ($A1.8 billion) to evacuees in more than 1.4 million households.
It was the charity's largest cash program yet — double the amount distributed after the September 11 terrorist attacks.
"We went in knowing that we had a great need, almost an incomprehensible need," Michael Brackney, manager of the Red Cross' client services program, said.
But charity experts said that in this era, when a highly visible disaster could attract hundreds of millions of dollars, relief groups were under enormous pressure to give the money away as quickly as possible or risk the ire of donors.
After the September 11 attacks, when the Red Cross was criticised for trying to use some of the money to prepare for future disasters, donors are not keen to divert funds to other causes, say those who assess charitable giving. But that presents challenges to charities that usually are careful to parcel out aid based on need.
SCUMSCUMSCUMSCUMSCUM
I'll be watching, you may never know when or how, but I'll be there. I am there now....
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