Fraud Alleged at Red Cross Call Centers

HeeBGBz

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Mon Dec-26-05 10:43 PM
Original message

Fraud Alleged at Red Cross Call Centers

http://www.washingtonpost.com/wp-dyn/content/article/2005/12/26/AR2005122600654.html

snip

Nearly 50 people have been indicted in connection with a scheme that bilked hundreds of thousands of dollars from a Red Cross program to put cash into the hands of Hurricane Katrina victims, according to federal authorities.

Seventeen of the accused worked at the Red Cross claim center in Bakersfield, Calif., which handled calls from storm victims across the country and authorized cash payments to them. The others charged were the workers' relatives and friends, prosecutors said last week.

How do these people live with themselves?

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BeyondGeography

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Mon Dec-26-05 10:45 PM
Response to Original message

1. Grifter Nation

That's what happens when you put crooks in charge of everything, right up to the insider trader who scammed his way into the White House.

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Xenotime

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Tue Dec-27-05 02:51 PM
Response to Reply #1

11. Exactly...

the reason * let FEMA sit on $$ before helping new orleans was to get the interest money.

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Oceansaway

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Mon Dec-26-05 11:11 PM
Response to Original message

2. here we go again....

awhile back they had a scam too....

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Coastie for Truth

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Tue Dec-27-05 12:14 AM
Response to Original message

3. Temp contract employees from a body shop --

The original article says

Red Cross officials emphasize that no Red Cross workers have been accused in the fraud and that the amount stolen was a tiny fraction of their cash program. They plan to seek restitution.

But they say they have learned from the experience. They are testing systems for the next hurricane season that offer more security but also speed up the process for victims.

New procedures now include "National Agency Check" and "Police Records Check" for vendors (as these perps were), paid staff, and volunteers.

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Sven77

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Tue Dec-27-05 12:14 AM
Response to Original message

4. more fraud

at the top of united way

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PassingFair

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Tue Dec-27-05 12:52 AM
Response to Original message

5. But, but...it's OK if.....

everyone ELSE is DOING it too! Right? Right?

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zbdent

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Tue Dec-27-05 09:07 AM
Response to Original message

6. Go over to freeperville and

find out for yourself . . . I'm sure that many of the caught probably are frequent posters there . . .

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Indykatie

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Tue Dec-27-05 09:41 AM
Response to Reply #6

7. Not a Surprise

A while back the cable news stations were harping on situations where the cash cards developed for Katrina victims were being used to buy high end products in cities such as Atlanta. It was obvious to me that the people involved were no doubt Red Cross personnel but the stories left the impression that Katrina victims were using the card inappropriately.

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newspeak

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Tue Dec-27-05 01:12 PM
Response to Reply #7

8. well, that reminds me

it's time to donate money before the end of the year to Katrina victims. I'll donate to the American Friends Society and last time I donated directly to the New Orleans site. I wonder if it's still up and running? I will not donate to Red Cross since I don't trust them to direct all of my money to the victims of the hurricane.

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Coastie for Truth

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Tue Dec-27-05 02:15 PM
Response to Reply #8

9. The fall back for the Red Cross is not the small

faith based groups.

For a major disaster the fall back is the Per wikipedia -- State Defense Forces are distinct from the National Guard in that they are not federal entities and cannot be made so. The federal government officially recognized State Defense Forces under 32 USC Sec 109 and provided that State Defense Forces "may not be called, ordered, or drafted into the armed forces" (of the United States), thus preserving their separation from the National Guard.

Also noted in the Wikipedia article is that SDFs generally operate with emergency management and homeland security missions.

Based on our earthquake preparedness drills (I live a few miles from both the San Andreas Fault and the Calaveras-Hayward Fault) - the Red Cross is "on scene" - at least getting shelters opened (pre-arranged with sites), with cots, blankets, food, etc. before anybody else.

I am a Red Cross VOLUNTEER - I do not get paid. I actually inconvenience myself, and feed, cloth, and house disaster victims. Plus, while I am semi-retired, I have to work part time - and when I am manning a shelter or helping flood or fire victims - I am not churning out billable hours.

BTW - based on my experience with Katrina victims, the most cost effective agency was - they got my (1960's era) Coast Guard cubicle mate and his family out of New Orleans and relocated quickly.

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Coastie for Truth

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Tue Dec-27-05 02:26 PM
Response to Reply #7

10. Those debit cards were issued to shelter clients

(i.e.) displaced Hurricane Katrina victims - and were used by (or maybe sold by) the victims.

The client's name is not embossed on the debit card. The Red Cross Logo IS on the card - Chase Mastercard Debit Card.

There are some fraud alerts ($/transaction, $/day, etc. trigger a flag but do not kill the card)

By the way, what is the basis for your statement that

It was obvious to me that the people involved were no doubt Red Cross personnel but the stories left the impression that Katrina victims were using the card inappropriately.

- you should report this to law enforcement.

Post Katrina - Red Cross volunteers now have to have a "National Agency Check" and a "Criminal Record Check."

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