Storms 411

SoCal man sentenced to prison in Hurricane Katrina scam

A federal judge dismissed the recommendations of prosecutors and dealt a harsher punishment Monday to a man who pleaded guilty to impersonating an American Red Cross worker to collect donations for Hurricane Katrina victims.

Tino Lee, 44, of Burbank was sentenced Monday to a year in federal prison and two years of probation.

U.S. District Judge George H. King's decision deviated from prosecutors' recommendation that he serve three years of probation and 400 hours of community service as part of a plea deal, his attorney, Robert Welbourn, said.

"We were surprised by it," Welbourn said. "Judge King decided a stronger message needed to be sent to the community and this was one way to do it."  [Read more - SFGate]

SoCal man sentenced to prison in Hurricane Katrina scam

A federal judge dismissed the recommendations of prosecutors and dealt a harsher punishment Monday to a man who pleaded guilty to impersonating an American Red Cross worker to collect donations for Hurricane Katrina victims.

Tino Lee, 44, of Burbank was sentenced Monday to a year in federal prison and two years of probation.

U.S. District Judge George H. King's decision deviated from prosecutors' recommendation that he serve three years of probation and 400 hours of community service as part of a plea deal, his attorney, Robert Welbourn, said.

"We were surprised by it," Welbourn said. "Judge King decided a stronger message needed to be sent to the community and this was one way to do it."

Lee was considering filing an appeal to ask for a lower sentence, he said.

Lee and co-defendant Gina Liz Nicholas, 19, were arrested Sept. 15 after a police officer saw them collecting donations at a table outside a Best Buy store in Burbank, holding a sign reading "American Red Cross-Katrina Disaster."

The officer was suspicious of the makeshift badges they were wearing and asked to see formal Red Cross identification.

Best Buy employees told investigators the two and a minor who was not arrested had been soliciting funds for a week before the arrests. Authorities recovered $116.63 in cash and a $200 check from the donation box. An additional $91 in small bills was found in Nicholas' wallet and Lee had $153.91 in cash.

On the day Lee and Nicholas made their first court appearance, a group of Nicholas' family members visited a local Red Cross office with a plastic bag full of cash they said had been collected, according to Assistant U.S. Attorney Ellyn Lindsay.

At the time, Welbourn said all the collected funds have been handed over in hopes for leniency at Monday's sentencing hearing.

Lee has until March 6 to report to prison. Nicholas was scheduled to be sentenced Feb. 13.

Forty-nine accused of bilking Red Cross hurricane funds

FRESNO (AP) — Forty-nine people have been indicted in a scheme that bilked thousands of dollars from a Red Cross fund designated for Hurricane Katrina victims, federal authorities said Tuesday.

At least 14 suspects worked at a Red Cross call center in Bakersfield and are accused of helping family and friends file false claims for aid money, said Mary Wenger, a spokeswoman for U.S. Attorney McGregor Scott in Sacramento.

All the suspects are from the Bakersfield area and face federal wire fraud charges, she said. Six have pleaded guilty.

The fake claims drained at least $200,000 from the fund, but that number is expected to rise as the investigation continues, Red Cross spokeswoman Devorah Goldburg said Tuesday. [Read more - USAtoday]

Day 43 – 10/3/05, Florida Man Charged With Hurricane Katrina Internet Scam

R. Alexander Acosta, United States Attorney for the Southern District of Florida, and Michael S. Clemens, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced today the Indictment and arrest of defendant, Gary S. Kraser, for fraudulently soliciting charitable donations supposedly intended for humanitarian relief to the victims of Hurricane Katrina. Kraser was charged with four counts of wire fraud, in violation of Title 18, United States Code, Section 1343.

According to Indictment, Kraser falsely claimed in conversations on the Internet, and ultimately via the website at http://www.AirKatrina.com, that he was piloting flights to Louisiana to provide medical supplies to the areas affected by Hurricane Katrina and to evacuate children and others in critical medical condition. Kraser further claimed that he had organized a group of Florida pilots to assist him in his supposed relief efforts.

In one fraudulent Internet communication posted on August 30, 2005, Kraser pretended to have returned from Louisiana, and wrote, "I am shaking as I write this, as I just arrived home, and just now allowed my body and mind to accept what I saw tonight... I am crying as I read this... I saw people on their roofs, that had used axes more than likely to cut through the roof, waving at us, as they thought we were Air Rescue... I saw dogs wrapped in electrical lines still alive and sparks flying from their bodies being electrocuted, as well as some people dead already. If I had a helicopter, I would be there now rather than back in FL... I'm so sorry I couldn't do more... I'm crying and hugging my dog next to me now... I will hear these screams for the rest of my life..." [Read more - US Newswire]

[For more information and articles about Identity Theft go to: Online Credit Card Fraud Prevention]

Beware of Contractor Fraud

The Department of Homeland Security’s Federal Emergency Management Agency and the Louisiana Office of Homeland Security and Emergency Preparedness urge victims of Hurricanes Katrina and Rita to look out for scam artists. You are probably in need of a reputable contractor to help with repair and restoration. Inevitably, the demand for qualified contractors will exceed the supply. The demand for contractors and home repair may be an opportunity for home repair rip-off artists that may overcharge, perform shoddy work or skip town without finishing your job.

Because of the extent of damages from the Katrina and Rita disasters, many legitimate licensed home-repair companies can be booked solid for months. Frustrated and anxious homeowners and landlords, eager to get their property back in shape, may neglect to take the usual precautions when hiring contractors. As a result, some consumers will find that they've hired help that will be no help at all. Consumers need to be aware of the risks of hiring part-time contractors, contractors from surrounding areas, inexperienced contractors, and all too often, just plain crooks, who are out to make a fast buck.

FEMA offers the following tips for consumers facing major repairs after a disaster hits home:

• Deal only with licensed and insured contractors. You can verify a contractor’s license by visiting the State of Louisiana’s internet site at http://www.lslbc.louisiana.gov. You may also check with the Better Business Bureau, local homebuilders association, or trade council to see if any complaints have been lodged against the contractor.
• Check references and get recommendations. Any contractor should be willing to provide references from previous customers; a few calls could save you a great deal of grief and time. Ask friends, relatives, neighbors, co-workers, insurance agents, or other people in your community whom you know and trust, for their recommendations.
• Ask for proof of insurance. Make sure the contractor carries general liability insurance and worker’s compensation. You might be liable for any accidents that occur on your property if the contractor does not carry proper insurance.
• Insist on, and take your time about, signing a contract. If you can, compare services and prices before making a final decision. Get a written estimate that includes any oral promises the contractor made. Remember to ask if there's a charge for an estimate before allowing anyone into your home; the cost of a written estimate is often applied to the price of the repairs. Ask for explanations for price variations, and don't automatically choose the lowest bidder. Get a copy of the final, signed contract before the job begins. Do not sign a blank contract or one with blank spaces.
• Get any guarantees in writing. Guarantees promised by the contractor should be written into the contract and should clearly state what is guaranteed, who is responsible for the guarantee, and how long the guarantee is valid.
• Ask a knowledgeable friend, relative or attorney to review a home repair contract before you sign. If you get a loan to pay for the work, be cautious about using your home as security. If you don't repay the loan as agreed, you could lose your home. Consider asking an attorney to review the loan documents, as well.
• Obtain a local building permit if required. Permits may be required for site work, demolition, or reconstruction. Contact your local government for permit information.
• Resist dealing with any contractor who asks you to pay for the entire job up front. A deposit of one-third of the total price is standard procedure. Pay only by check or credit card, and pay the final amount only after the work is completed to your satisfaction. Don't pay cash.
• Consider purchasing the materials and supplies for the repair job yourself. By doing this, you can be sure the cost is accurate and you get the quality you want.
• Be ready to take your time. You may be desperate to get back into your home, but you may be better off in the long run if you take your time, make sure your home is safe, and work with a reliable contractor, even though it make take some time to schedule your repair.

Consumers should also be aware that some rip-off artists may pretend to be employed by FEMA or other agencies. Some traits of scams or con artists can include:

• Lack of proper identification – A FEMA or Small Business Administration (SBA) shirt or jacket is not absolute proof of someone’s affiliation with an agency. Ask to see the laminated photo identification card; if they don’t have it, they are probably not for real.
• Going door-to-door – Persons going door-to-door to damaged homes, or phoning victims, and claiming to be building contractors could be frauds. If they solicit personal information such as social security or bank account numbers they are not for real. FEMA inspectors may come to your neighborhood but all FEMA inspectors will have proper, laminated, photo identification. Remember, FEMA and SBA inspectors never charge applicants for disaster assistance or for inspections. If in doubt, do not give out information.
• Charging fees to be put on a list or fees to have forms filled out – Some scammers have asked for upfront money to be put on a list or demanded fees to fill out the disaster loan application.
• Offers to increase the amount of your disaster damage assessment – This is not wise and is a sure sign of a scam.

Hurricane Katrina Has Greatly Elevated the Risk of Identity Theft

The circumstances following Hurricane Katrina, warns an expert on the issue, are ripe for identity theft and call for a renewed wake-up call on fraud.

"Identity thieves couldn't ask for a better opportunity," said Robert Siciliano, a nationally televised identity theft and personal security expert. Siciliano is author of "The Safety Minute: 01" and an upcoming book, "Identity Theft Pandemic: Curing the Identity Theft Virus."

On Sept. 6, an Associated Press report by Jennifer Kerr focused on the pervasiveness of floating debris that litters the Hurricane-afflicted region. Much of this debris displays personal, financial, and other identifying information. A Sept. 9 story that ran in All Headline News reinforced the reality that victims of this hurricane are now highly susceptible to identity theft and fraud.

"We've heard on the news that the Gulf Coast has been through two disasters in just two weeks," said Siciliano. "First, the storm hit. Then, we all witnessed a painfully slow response to the unfolding danger in New Orleans. Let's make sure we stop a third disaster, the possible flood of identity theft in Hurricane Katrina's wake, before it strikes us out."

"It's just as important as finding shelter," Siciliano added. "Public records, personal financial information, and other important documents are strewn across an area the size of Great Britain for everyone to see. There's no telling how many of Katrina evacuees will find that their identities have been compromised by thieves."

Those who have tried to help with their money are also encountering scams. A Sept. 8 New York Times article by Tom Zeller Jr. explored the wide variety of online con jobs masquerading as legitimate hurricane relief sites. Many sprouted almost immediately following the disaster.

"The aftermath of Hurricane Katrina is starting to look a lot like what happened after the Tsunami earlier this year," Siciliano concluded. "It's a shame that we have to think about thieves at times like these. It's also the reality." [For more information and articles about Identity Theft go to: Online Credit Card Fraud Prevention]

Again, help the Red Cross help others. Give generously. Thanks!

Day 21 – 9/12/05, Katrina Victims Face Identity Crisis

With vital records under water, proving they're themselves can be difficult

Katrina washed away their homes, their personal belongings, and their livelihoods. It may have washed away their identities, too.

Scattered to all corners of the U.S., former residents of New Orleans and surrounding areas must now piece together their lives. For many, the first question they’ll face when seeking aid, a new job or a place to live will be: Do you have ID?

Experts predict many don’t.

Birth certificates, marriage licenses, even drivers licenses, personal checks and credit cards were washed away in the storm. Without the usual means of identifying themselves, evacuees face another major obstacle to normalcy. [Read more - MSNBC] [More Information on Credit Card Fraud Prevention]

Again, help the Red Cross help others. Give generously. Thanks!

Scammers Hit Web in Katrina's Wake

Fake charity sites, e-mail solicitations try to cash in on public sympathy

Web sites claiming to collect donations for Hurricane Katrina victims. Phony e-mails pretending to solicit money from well-known charities. Online auctions of Internet domain names with Katrina-related addresses, such as "katrinaourtsunami.com."

Less than two days after the hurricane, Internet opportunists are already trying to cash in on public sympathy for Katrina's victims.

Within the past 24 hours, several Web sites have emerged, promising to forward money to relief workers. Bearing such names as Katrinahelp.com, katrinadonations.com and katrinarelief.com, the sites ask for money to be sent through Paypal, but there is no way to verify who is getting the money. [Read more - MSNBC]

For more information on reducing your risk of identity theft, visit Online Credit Card Fraud Prevention

Again, help the Red Cross help others. Give generously. Thanks!

Don't Let Identity Theft Compound the Hurricane Katrina Catastrophe

SCOTTSDALE, Ariz., Aug. 31 /PRNewswire/ -- Natural disasters like Hurricane Katrina often pave the way for looting, price gouging, and other opportunistic scams -- including identity theft. Many Gulf Coast residents are still in survival mode, focused on keeping themselves, their loved ones, and their belongings out of harm's way. But as they deal with the devastation, warned Identity Theft 911 CEO Sheryl Christenson, they must remember to safeguard their personal information to keep identity thieves from compounding their problems.

"Potential victims must remember to think beyond their immediate need to survive," said Christenson, "even though this flies in the face of most people's conditioned response to disaster." At such a moment, Christenson noted, your possessions -- including documents containing all the information an identity thief covets most -- are at their most vulnerable. Accordingly, there are basic precautions one should take to prevent a natural disaster from becoming an identity theft catastrophe. Among them:

• If you are faced with an evacuation order or some other circumstance that forces you to vacate your home, protect the premises with the strongest possible security measures.
• Shred, burn, or otherwise destroy any unneeded documents containing personal information, such as Social Security and driver's license numbers, credit card and bank account numbers, phone numbers, and postal and email addresses.
• If identity theft is prevalent in your area, consider leasing a safe deposit box at a local bank in which to secure such documents.
• Any items containing personal identifiers that are not destroyed or safely secured should be your possession at all times. This is, in fact, one of the rare instances in which an individual should carry a Social Security card, birth certificate, passport, and similar articles.

"It's essential to retain your composure during tumultuous events such as these," said Christenson. "Identity theft may not be the first thing on your mind when you hear that a 500-mile-wide hurricane is headed in your direction. But the good news is that after a natural disaster is over, life goes on. Your identity is the foundation your entire life is built on. Don't let identity theft compound the catastrophe."

For more information on reducing your risk of identity theft, visit Online Credit Card Fraud Prevention

Again, help the Red Cross help others. Give generously. Thanks!