Task force on guard for fraud

Topeka Capital-Journal, The, May 27, 2007 by Michael Hooper

By Michael Hooper

THE CAPITAL-JOURNAL

State and federal officials are required to follow guidelines for doling out the millions of taxpayer dollars that have become available for the reconstruction of tornado-stricken Greensburg.

To prevent fraud, a newly formed Greensburg Fraud Task Force will investigate and prosecute any thefts of federal disaster relief funds earmarked for victims of the tornado, Eric Melgren, the U.S. attorney for Kansas, said Friday.

State and federal agencies, including the Kansas Bureau of Investigation, Federal Bureau of Investigation, U.S. Department of Health and Human Services and U.S. Department of Homeland Security - Office of Inspector General, have joined the task force. Their goal is to keep thieves and scam artists from diverting federal funds meant for assisting victims of the tornado and rebuilding the town.

The project is modeled after the Hurricane Katrina Fraud Task Force created by U.S. Attorney General Alberto Gonzales in September 2005.

"During Katrina, investigators saw cases in which people living all over the country filed for and received federal assistance by claiming falsely that they were displaced by the storm," Melgren said in a news release.

"In other cases, contractors and subcontractors hired to clean up storm debris collected significant amounts by billing the federal government for work they did not perform and equipment they did not provide," Melgren said. "Our goal is to keep those kinds of things from happening during the rebuilding of Greensburg."

Ross Fredenburg, spokesman for the Federal Emergency Management Agency in Wichita, said FEMA will pay for at least 75 percent of debris removal, emergency protective measures and public assistance during reconstruction.

One of the strongest tornadoes in recent years wiped out the southwest Kansas town of about 1,500 residents on May 4 and killed 11 people.

Since the storm, workers have hauled away 189,911 cubic yards of debris - enough to fill more than 50 Olympic-size swimming pools. An estimated 110,000 cubic yards of debris remains.

"We will be reimbursing the cost of that," Fredenburg said. "We're there on the scene to oversee reimbursements."

He said FEMA has to follow rules and guidelines established by the Robert T. Stafford Disaster Relief and Emergency Assistance Act.

Experienced FEMA workers said they have never seen anything like the disaster in Greensburg.

"I've handled over 50 disasters and several tornadoes and I've never seen anything quite this bad," Fredenburg said. "It's pretty extraordinary. It's empty land. It's a shame."

After all the debris is cleaned up, the next step is providing funding for the reconstruction of the town, he said.

FEMA officials say they normally provide 75 percent of funding with matching money coming from local and state governments. But the Kansas congressional delegation has asked FEMA to provide 100 percent funding for the reconstruction.

A war spending bill approved by Congress on Thursday includes $40 million in aid for Greensburg. The $40 million is designated for Greensburg and Kiowa County, as well as other parts of the state affected by recent storms and declared federal disaster areas. The money will supplement funds already available through FEMA.

Fredenburg said FEMA has received 21 requests in the Greensburg area for public assistance.

He said FEMA doesn't typically help for-profit corporations, including for-profit utilities. FEMA pays for what private insurance doesn't cover.

Kansas Insurance Commissioner Sandy Praeger said data from 33 insurance company groups indicate that $82 million of insured property losses have been paid so far. When all claims are completed, the insured property losses from the tornado likely will exceed $153 million, Praeger's office estimated.

Michael Hooper can be reached at (785)295-1293 or

michael.hooper@cjonline.com.