CINXE.COM

<html xmlns:tvservices="http://www.msnbc.com"><head><script type="text/javascript" src="/_static/js/bundle-playback.js?v=HxkREWBo" charset="utf-8"></script> <script type="text/javascript" src="/_static/js/wombat.js?v=txqj7nKC" charset="utf-8"></script> <script>window.RufflePlayer=window.RufflePlayer||{};window.RufflePlayer.config={"autoplay":"on","unmuteOverlay":"hidden"};</script> <script type="text/javascript" src="/_static/js/ruffle/ruffle.js"></script> <script type="text/javascript"> __wm.init("https://web.archive.org/web"); __wm.wombat("http://msnbc.msn.com:80/id/13304506/","20060615215203","https://web.archive.org/","web","/_static/", "1150408323"); </script> <link rel="stylesheet" type="text/css" href="/_static/css/banner-styles.css?v=S1zqJCYt" /> <link rel="stylesheet" type="text/css" href="/_static/css/iconochive.css?v=3PDvdIFv" />  <meta http-equiv="content-type" content="text/html; charset=UTF-8"><meta http-equiv="pics-label" content="(pics-1.1 "http://www.icra.org/ratingsv02.html" l gen true for "http://www.msnbc.msn.com" r (nz 1 vz 1 lz 1 oz 1 cz 1 ) "http://www.rsac.org/ratingsv01.html" l gen true for "http://www.msnbc.msn.com" r (l 0 n 0 s 0 v 0 ))"><meta name="description" content="Report details thousands of examples of alleged fraud and abuse that cost taxpayers about $1 billion."><meta name="Search.Document" content="story"><meta name="Search.Title" content="FEMA relief rife with abuse, fraud, report says"><meta name="Search.Image" content="/msnbc/Components/Video/060613/nn_reid_fraud_060613.jpg"><meta name="Search.Byline" content="Chip Reid"><meta name="Search.Updated" content="Tue, 13 Jun 2006 23:34:38 GMT"><meta name="Search.Section" content="Nightly News with Brian Williams"><meta name="Search.ImageSource" content="Nightly News"><meta name="keywords" content="GAO report,Fema,Hurricane Katrina"><title>FEMA relief rife with abuse, fraud, report says - Nightly News with Brian Williams - MSNBC.com</title><link rel="stylesheet" type="text/css" href="/web/20060615215203cs_/http://msnbc.msn.com/css/html40.css"><link rel="stylesheet" type="text/css" href="/web/20060615215203cs_/http://msnbc.msn.com/id/7181924/"><link rel="alternate" type="application/rss+xml" title="MSNBC - Nightly News" href="https://web.archive.org/web/20060615215203/http://rss.msnbc.msn.com/id/3032618/device/rss/rss.xml" xmlns:media="http://search.yahoo.com/mrss/"/><link rel="alternate" type="application/rss+xml" title="MSNBC - Top Stories" href="https://web.archive.org/web/20060615215203/http://rss.msnbc.msn.com/id/3032091/device/rss/rss.xml"><script src="/web/20060615215203js_/http://msnbc.msn.com/js/std.js"></script><script type="text/javascript">gEnabled=false;</script></head><body leftmargin="0" topmargin="0"><script src="https://web.archive.org/web/20060615215203js_/http://ads1.msn.com/library/dap.js"></script><span id="URholder" style="display:none"><script language="javascript" src="/web/20060615215203js_/http://msnbc.msn.com/js/msnrrua.js"></script><img src="/web/20060615215203im_/http://msnbc.msn.com/images/msnrrua/b40.gif" border="0" id="Rating" usemap="#RatingMap" originalimg="/images/msnrrua/b40.gif" style="cursor:hand;"/><map name="RatingMap" hp="/rate.ashx" ct="0fQ%2fRL7a%2ff%2fk%2fnaO9vV%2f%2bmuqK8qoh6K7dFMbC%2buk6d8niTDyScCKmo5%2bc32I36Fs" ii="BGsgkOLc%2ffDSvV0E8IqwUg%3d%3d" it="long" ai="7f333340-ad1e-4978-9b5d-f92512fa6938" key="rr%2560f%2501kqs%21%2500%2512J%2517%250f%257fIS%2526nJdZ" hc="-532949337" rtxt="You rated this item %userrating%"><area shape="RECT" coords="0,0,6,12" onmouseover="UCI(this,'Rating')" onmouseout="URI('Rating')" onclick="return UR('/images/msnrrua/y05.gif', 'Rating', 'RpkcVOvUN1xYuNF2ef5duQ%3d%3d', 0, this)" href="/web/20060615215203/http://msnbc.msn.com/rate.ashx?ct=0fQ%2fRL7a%2ff%2fk%2fnaO9vV%2f%2bmuqK8qoh6K7dFMbC%2buk6d8niTDyScCKmo5%2bc32I36Fs&ii=BGsgkOLc%2ffDSvV0E8IqwUg%3d%3d&it=long&ai=7f333340-ad1e-4978-9b5d-f92512fa6938&r=RpkcVOvUN1xYuNF2ef5duQ%3d%3d&c=0&u=0&ru=http%3a%2f%2fmsnbc.msn.com%2fDefault.aspx%3fid%3d13304506%26uart%3d1%26uarc%3dRating" alt="Rate it 0.5" i="/images/msnrrua/y05.gif" v="0.5"></area><area shape="RECT" coords="6,0,12,12" onmouseover="UCI(this,'Rating')" onmouseout="URI('Rating')" onclick="return UR('/images/msnrrua/y10.gif', 'Rating', 'lItwFT4gSjQtXUHzbr%2f9%2bA%3d%3d', 1, this)" href="/web/20060615215203/http://msnbc.msn.com/rate.ashx?ct=0fQ%2fRL7a%2ff%2fk%2fnaO9vV%2f%2bmuqK8qoh6K7dFMbC%2buk6d8niTDyScCKmo5%2bc32I36Fs&ii=BGsgkOLc%2ffDSvV0E8IqwUg%3d%3d&it=long&ai=7f333340-ad1e-4978-9b5d-f92512fa6938&r=lItwFT4gSjQtXUHzbr%2f9%2bA%3d%3d&c=1&u=0&ru=http%3a%2f%2fmsnbc.msn.com%2fDefault.aspx%3fid%3d13304506%26uart%3d2%26uarc%3dRating" alt="Rate it 1" i="/images/msnrrua/y10.gif" v="1"></area><area shape="RECT" coords="12,0,18,12" onmouseover="UCI(this,'Rating')" onmouseout="URI('Rating')" onclick="return UR('/images/msnrrua/y15.gif', 'Rating', 'XnNnFdCUj3tg113qeUANiA%3d%3d', 2, this)" href="/web/20060615215203/http://msnbc.msn.com/rate.ashx?ct=0fQ%2fRL7a%2ff%2fk%2fnaO9vV%2f%2bmuqK8qoh6K7dFMbC%2buk6d8niTDyScCKmo5%2bc32I36Fs&ii=BGsgkOLc%2ffDSvV0E8IqwUg%3d%3d&it=long&ai=7f333340-ad1e-4978-9b5d-f92512fa6938&r=XnNnFdCUj3tg113qeUANiA%3d%3d&c=2&u=0&ru=http%3a%2f%2fmsnbc.msn.com%2fDefault.aspx%3fid%3d13304506%26uart%3d3%26uarc%3dRating" alt="Rate it 1.5" i="/images/msnrrua/y15.gif" v="1.5"></area><area shape="RECT" coords="18,0,25,12" onmouseover="UCI(this,'Rating')" onmouseout="URI('Rating')" onclick="return UR('/images/msnrrua/y20.gif', 'Rating', 'lxWpUbXOg89JaB6hLziMfw%3d%3d', 3, this)" href="/web/20060615215203/http://msnbc.msn.com/rate.ashx?ct=0fQ%2fRL7a%2ff%2fk%2fnaO9vV%2f%2bmuqK8qoh6K7dFMbC%2buk6d8niTDyScCKmo5%2bc32I36Fs&ii=BGsgkOLc%2ffDSvV0E8IqwUg%3d%3d&it=long&ai=7f333340-ad1e-4978-9b5d-f92512fa6938&r=lxWpUbXOg89JaB6hLziMfw%3d%3d&c=3&u=0&ru=http%3a%2f%2fmsnbc.msn.com%2fDefault.aspx%3fid%3d13304506%26uart%3d4%26uarc%3dRating" alt="Rate it 2" i="/images/msnrrua/y20.gif" v="2"></area><area shape="RECT" coords="25,0,31,12" onmouseover="UCI(this,'Rating')" onmouseout="URI('Rating')" onclick="return UR('/images/msnrrua/y25.gif', 'Rating', 'g0gjHxi966wtYuJ%2fZOwLHQ%3d%3d', 4, this)" href="/web/20060615215203/http://msnbc.msn.com/rate.ashx?ct=0fQ%2fRL7a%2ff%2fk%2fnaO9vV%2f%2bmuqK8qoh6K7dFMbC%2buk6d8niTDyScCKmo5%2bc32I36Fs&ii=BGsgkOLc%2ffDSvV0E8IqwUg%3d%3d&it=long&ai=7f333340-ad1e-4978-9b5d-f92512fa6938&r=g0gjHxi966wtYuJ%2fZOwLHQ%3d%3d&c=4&u=0&ru=http%3a%2f%2fmsnbc.msn.com%2fDefault.aspx%3fid%3d13304506%26uart%3d5%26uarc%3dRating" alt="Rate it 2.5" i="/images/msnrrua/y25.gif" v="2.5"></area><area shape="RECT" coords="31,0,38,12" onmouseover="UCI(this,'Rating')" onmouseout="URI('Rating')" onclick="return UR('/images/msnrrua/y30.gif', 'Rating', 'gtWQYT3PGenLhQK7qgyM1Q%3d%3d', 5, this)" href="/web/20060615215203/http://msnbc.msn.com/rate.ashx?ct=0fQ%2fRL7a%2ff%2fk%2fnaO9vV%2f%2bmuqK8qoh6K7dFMbC%2buk6d8niTDyScCKmo5%2bc32I36Fs&ii=BGsgkOLc%2ffDSvV0E8IqwUg%3d%3d&it=long&ai=7f333340-ad1e-4978-9b5d-f92512fa6938&r=gtWQYT3PGenLhQK7qgyM1Q%3d%3d&c=5&u=0&ru=http%3a%2f%2fmsnbc.msn.com%2fDefault.aspx%3fid%3d13304506%26uart%3d6%26uarc%3dRating" alt="Rate it 3" i="/images/msnrrua/y30.gif" v="3"></area><area shape="RECT" coords="38,0,45,12" onmouseover="UCI(this,'Rating')" onmouseout="URI('Rating')" onclick="return UR('/images/msnrrua/y35.gif', 'Rating', '98vPiDroLgoLS4H7iVwAzw%3d%3d', 6, this)" href="/web/20060615215203/http://msnbc.msn.com/rate.ashx?ct=0fQ%2fRL7a%2ff%2fk%2fnaO9vV%2f%2bmuqK8qoh6K7dFMbC%2buk6d8niTDyScCKmo5%2bc32I36Fs&ii=BGsgkOLc%2ffDSvV0E8IqwUg%3d%3d&it=long&ai=7f333340-ad1e-4978-9b5d-f92512fa6938&r=98vPiDroLgoLS4H7iVwAzw%3d%3d&c=6&u=0&ru=http%3a%2f%2fmsnbc.msn.com%2fDefault.aspx%3fid%3d13304506%26uart%3d7%26uarc%3dRating" alt="Rate it 3.5" i="/images/msnrrua/y35.gif" v="3.5"></area><area shape="RECT" coords="45,0,51,12" onmouseover="UCI(this,'Rating')" onmouseout="URI('Rating')" onclick="return UR('/images/msnrrua/y40.gif', 'Rating', 'cmWwUI2FAIEGVERwcKqkXQ%3d%3d', 7, this)" href="/web/20060615215203/http://msnbc.msn.com/rate.ashx?ct=0fQ%2fRL7a%2ff%2fk%2fnaO9vV%2f%2bmuqK8qoh6K7dFMbC%2buk6d8niTDyScCKmo5%2bc32I36Fs&ii=BGsgkOLc%2ffDSvV0E8IqwUg%3d%3d&it=long&ai=7f333340-ad1e-4978-9b5d-f92512fa6938&r=cmWwUI2FAIEGVERwcKqkXQ%3d%3d&c=7&u=0&ru=http%3a%2f%2fmsnbc.msn.com%2fDefault.aspx%3fid%3d13304506%26uart%3d8%26uarc%3dRating" alt="Rate it 4" i="/images/msnrrua/y40.gif" v="4"></area><area shape="RECT" coords="51,0,58,12" onmouseover="UCI(this,'Rating')" onmouseout="URI('Rating')" onclick="return UR('/images/msnrrua/y45.gif', 'Rating', 'B8YHL0rFbmCyaAgLvPgdow%3d%3d', 8, this)" href="/web/20060615215203/http://msnbc.msn.com/rate.ashx?ct=0fQ%2fRL7a%2ff%2fk%2fnaO9vV%2f%2bmuqK8qoh6K7dFMbC%2buk6d8niTDyScCKmo5%2bc32I36Fs&ii=BGsgkOLc%2ffDSvV0E8IqwUg%3d%3d&it=long&ai=7f333340-ad1e-4978-9b5d-f92512fa6938&r=B8YHL0rFbmCyaAgLvPgdow%3d%3d&c=8&u=0&ru=http%3a%2f%2fmsnbc.msn.com%2fDefault.aspx%3fid%3d13304506%26uart%3d9%26uarc%3dRating" alt="Rate it 4.5" i="/images/msnrrua/y45.gif" v="4.5"></area><area shape="RECT" coords="58,0,63,12" onmouseover="UCI(this,'Rating')" onmouseout="URI('Rating')" onclick="return UR('/images/msnrrua/y50.gif', 'Rating', '%2ffPUDgdM0oIDFgswcpJuxQ%3d%3d', 9, this)" href="/web/20060615215203/http://msnbc.msn.com/rate.ashx?ct=0fQ%2fRL7a%2ff%2fk%2fnaO9vV%2f%2bmuqK8qoh6K7dFMbC%2buk6d8niTDyScCKmo5%2bc32I36Fs&ii=BGsgkOLc%2ffDSvV0E8IqwUg%3d%3d&it=long&ai=7f333340-ad1e-4978-9b5d-f92512fa6938&r=%2ffPUDgdM0oIDFgswcpJuxQ%3d%3d&c=9&u=0&ru=http%3a%2f%2fmsnbc.msn.com%2fDefault.aspx%3fid%3d13304506%26uart%3d10%26uarc%3dRating" alt="Rate it 5" i="/images/msnrrua/y50.gif" v="5"></area></map><img id="rrir_Rating" src="/web/20060615215203im_/http://msnbc.msn.com/images/msnrrua/1x1.gif" width="1" height="1" style="position:absolute;"><input type="hidden" id="rrur_Rating" style="behavior:url(/web/20060615215203im_/http://msnbc.msn.com/id/13304506/#default#userData)"><script language="javascript" defer="true">UGR('Rating')</script><script>var usrRating=4;var totalUsers=629</script></span><script type="text/javascript">s_prop41=usrRating+"|"+totalUsers;</script><div id="wrapper" class="w779"><div><a href="#skipnav" style="display:none;visibility:hidden">Skip navigation</a><script>pd_top('Story','html40','13304506','FEMA relief rife with abuse, fraud, report says','Report details thousands of examples of alleged fraud and abuse that cost taxpayers about $1 billion.','Nightly News','','','','1','19:34, 13/06/06','Chip Reid','component','','','3032618','70037','', '1',0);pd_om('msnbcom','100');</script><img src="https://web.archive.org/web/20060615215203im_/http://c.msn.com/c.gif?NC=1255&NA=1154&PS=70037&PI=7329&DI=305&TP=http%3a%2f%2fmsnbc.msn.com%2fid%2f13304506%2f" width="0" height="0" border="0" alt=""/><script src="https://web.archive.org/web/20060615215203js_/http://www.msnbc.msn.com/js/s_code_remote.js"></script><div id="nm_c1" class="nmX"></div><div id="nm_c2" class="nmX"></div><div id="nm_c3" class="nmX"></div><div id="nm_c4" class="nmX"></div></div><div id="head" class="w779"><table width="779" height="105" cellpadding="0" cellspacing="0" class="adbar"><tr><td align="center" valign="top"><script>ad_dap(90,728,'&PG=NBC9DW&AP=1390');</script></td></tr></table><div class="dMSNME_1"><table cellpadding="0" cellspacing="0" class="w779 pb9"><tr><td class="container" nowrap="true"><form action="https://web.archive.org/web/20060615215203/http://www.msnbc.msn.com/" id="search" method="get" onsubmit="return sr_DoSearch()"><fieldset><input type="radio" class="ml0t10" name="search" value="Web"/> <label class="v4" accesskey="s" for="q">Web</label><input class="ml0t10" type="radio" name="search" value="MSNBC" checked="true"/> <label class="v4" accesskey="s" for="q">MSNBC</label><input type="text" id="q" name="q" size="14" maxlength="150"/><input type="submit" class="button" name="submit" value="Search"/><input type="hidden" name="id" value="11881780"/><input name="FORM" value="AE" type="hidden"/><input type="hidden" name="os" value="0"/><input type="hidden" name="gs" value="1"/><input type="hidden" name="p" value="1"/></fieldset></form></td><td width="10px"></td><td class="container netnav pt9" nowrap="true"><a href="https://web.archive.org/web/20060615215203/http://alerts.msnbc.com/" rel="nofollow">Alerts</a>  <a href="https://web.archive.org/web/20060615215203/http://www.msnbc.msn.com/id/7422001/" rel="nofollow">Newsletters</a>  <a href="https://web.archive.org/web/20060615215203/http://www.msnbc.msn.com/id/5216556/" rel="nofollow">RSS</a>  <a href="https://web.archive.org/web/20060615215203/http://www.msnbc.msn.com/id/3303511/" rel="nofollow">Help</a>  </td><td align="right"><table cellpadding="0" cellspacing="0"><tr><td class="container netnav pt9"><a href="https://web.archive.org/web/20060615215203/http://g.msn.com/0nwenus0/AE/00" rel="nofollow">MSN Home</a></td><td width="10px"></td><td class="container netnav pt9"><a href="https://web.archive.org/web/20060615215203/http://g.msn.com/0nwenus0/AE/02?SU=http://msnbc.msn.com/" rel="nofollow">Hotmail</a></td><td width="10px"></td><td class="container netnav pt9"></td><td><a href="https://web.archive.org/web/20060615215203/http://g.msn.com/0nwenus0/AE/14" rel="nofollow"><noscript><img alt="MSN.com" id="logo" src="https://web.archive.org/web/20060615215203im_/http://sc.msn.com/global/c/lgpos/MSFT_pos.gif" height="35" width="118"/></noscript><script type="text/javascript">sr_UpdHead();</script></a></td></tr></table></td></tr></table></div></div><div id="page" class="fL"><div id="mbody" class="fL"><div id="nav" class="w130 fL"><table border="0" cellpadding="0" cellspacing="0" bgcolor="#EEEEEE"><tr><td><a href="/web/20060615215203/http://msnbc.msn.com/"><img width="130" height="90" border="0" alt="MSNBC News" src="/web/20060615215203im_/http://msnbc.msn.com/images/msnbc/logo01.gif"></a></td></tr><tr><td align="right"></td></tr><tr><td align="right"><table border="0" cellpadding="0" cellspacing="0" width="122" class="nmTB"><tr><td height="20" class="nmIBD" id="nmb" name="nmb" nm_sn="3032618" nm_suf="" cm_sf="Ex" cm="NewsMenuL1"><a class="nmLBD" href="/web/20060615215203/http://msnbc.msn.com/id/3032619/">Nightly News</a></td></tr><tr><td height="20" class="nmIB" id="nmb" name="nmb" nm_sn="12922868" nm_suf="" cm_sf="Ex" cm="NewsMenuL1"><a class="nmLB" href="/web/20060615215203/http://msnbc.msn.com/id/12916501/">Brian, Bono in Africa</a></td></tr><tr><td height="20" class="nmIB" id="nmb" name="nmb" nm_sn="3502862" nm_suf="" cm_sf="Ex" cm="NewsMenuL1"><a class="nmLB" href="/web/20060615215203/http://msnbc.msn.com/id/3502931/">Investigative Unit</a></td></tr><tr><td height="20" class="nmIB" id="nmb" name="nmb" nm_sn="10398559" nm_suf="" cm_sf="Ex" cm="NewsMenuL1"><a class="nmLB" href="/web/20060615215203/http://msnbc.msn.com/id/10397946/">Making a Difference</a></td></tr></table><table border="0" cellpadding="0" cellspacing="0" width="130" class="nmTS"><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="4001724" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/8004316/">Video</a></td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="3032524" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/3032525/">U.S. News</a></td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="3032506" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/3032507/">World News</a></td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="3032071" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/3032072/">Business</a></td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="3032112" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/3032113/">Sports</a></td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="3032083" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/3032084/">Entertainment</a></td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="3032117" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/3032118/">Tech / Science</a></td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="3088327" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/3032076/">Health</a></td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="3032127" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/3362034/">Weather</a></td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="3032122" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/3032123/">Travel</a></td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="3032104" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/3032105/">Blogs Etc.</a></td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="3104486" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/3948437/">Local News</a></td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="3032541" nm_suf="/site/newsweek" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/3032542/site/newsweek/">Newsweek</a></td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="5183445" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/4999736/">Multimedia</a></td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="7956945" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/7468311/">Most Popular</a></td></tr><tr><td height="20" class="nmIP">NBC NEWS</td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="3096433" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/3096434/">MSNBC TV</a></td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="3032632" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/3032633/">Today Show</a></td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="3032618" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/3032619/">Nightly News</a></td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="3032607" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/3032608/">Meet the Press</a></td></tr><tr><td height="20" class="nmIS" id="nmb" name="nmb" nm_sn="3032599" nm_suf="" cm_sf="" cm="NewsMenuL1"><a class="nmLS" href="/web/20060615215203/http://msnbc.msn.com/id/3032600/">Dateline NBC</a></td></tr></table><script>nm_init('/id/', '1', 'useropt', '');</script></td></tr><script>nm_st('1');</script></table><div style="padding-bottom:15;"><map name="map10641979"><area coords="0,0,130,22" shape="rect" alt="MSNBC Classifieds" href="/web/20060615215203/http://msnbc.msn.com/id/5289372/" id="gted" ce="1-1-1"><area coords="0,23,130,42" shape="rect" alt="Shopping" href="https://web.archive.org/web/20060615215203/http://shopping.msn.com/partnercategory.aspx?catId=646&ptnrId=1&ptnrdata=134&0dm=C102P"><area coords="0,43,130,62" shape="rect" alt="Jobs" href="https://web.archive.org/web/20060615215203/http://msn.careerbuilder.com/PLI/R/FindJobs.htm?siteid=CBMSNBC017"><area coords="0,63,130,91" shape="rect" alt="Dating with Perfectmatch.com" href="https://web.archive.org/web/20060615215203/http://www.perfectmatch.com/trk.asp?CID=6172"><area coords="0,92,130,112" shape="rect" alt="Autos" href="https://web.archive.org/web/20060615215203/http://www.cars.com/go/index.jsp?aff=msnbc"><area coords="0,112,129,142" shape="rect" alt="Real Estate with HomePages.com" href="https://web.archive.org/web/20060615215203/http://clk.atdmt.com/USE/go/msnnkhpg0040000006use/direct/01/"></map><img border="0" src="https://web.archive.org/web/20060615215203im_/http://msnbcmedia.msn.com/j/msnbc/Sections/zClassifieds/newsmenu_classifieds4b.gif,standard.jpg" vspace="0" hspace="0" usemap="#map10641979"></div><div style="padding-bottom:15;"><div class="textSmallgrey" style="text-align:center;width:122">Advertisement</div> <table width="122" border="1" cellspacing="0" cellpadding="0"> <tr><td><script language="JavaScript">var fSucceed = false;</script><script language="JavaScript" src="https://web.archive.org/web/20060615215203js_/http://shopping.msn.com/xmlbuddy/eShopOffer.aspx?formatType=-1&ptnrData=174&iurl=TVNEWS&styletype=0&v=3&ptnrId=1"></script><script language="JavaScript"> if (!fSucceed) document.write('<A href="https://web.archive.org/web/20060615215203/http://shopping.msn.com"><FONT size="1" family="Verdana">MSN Shopping</FONT></A>'); </script> </td></tr> </table></div><div style="text-align:center;padding-top:15;"><div style="padding-bottom:20;"><map name="map9900396"><area coords="0,0,120,163" shape="rect" alt="http://www.msnbc.msn.com/id/3032619/" href="/web/20060615215203/http://msnbc.msn.com/id/3032619/"></map><img border="0" src="https://web.archive.org/web/20060615215203im_/http://msnbcmedia.msn.com/i/msnbc/Components/Art/SITEWIDE/In_house_promos/120_Ads/NBC/Promo120_Netcast_NotHome.gif" height="163" width="120" vspace="0" hspace="0" alt="Nightly News Netcast" usemap="#map9900396"></div></div><div style="text-align:center;padding-top:15;"><div style="padding-bottom:20;"><link href="/web/20060615215203cs_/http://msnbc.msn.com/css/html40.css" rel="stylesheet" type="text/css"><script src="/web/20060615215203js_/http://msnbc.msn.com/js/std.js"></script><script>var cssList = new Array();</script><script>getCSS("3054039")</script><div class="box_3054039" style="width:122;"><script></script><table width="122" cellspacing="0" cellpadding="0" class="boxH_3054039"><tr><td width="*" nowrap="true" class="boxHC_3054039"><div class="textSmallBold"> RESOURCE GUIDE</div></td></tr></table><table width="122" cellspacing="0" cellpadding="0" class="boxB_3054039"><tr valign="top"><td class="boxBI_3054039"><div class="textHang"><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textSmall"><a href="https://web.archive.org/web/20060615215203/http://g.msn.com/0AD00026/801313.1??HCType=1&CID=801313&PG=NBCRG2" target="_blank">Dating with Perfectmatch.com</a></span></div><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textSmall"><a href="https://web.archive.org/web/20060615215203/http://clk.atdmt.com/USE/go/msnnkhpg0040000008use/direct/01/" target="_blank">Find your dream home today!</a></span></div><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textSmall"><a href="https://web.archive.org/web/20060615215203/http://shopping.msn.com/content/shp/?ctid=196">Shopping</a></span></div></div></td></tr></table></div></div><div style="text-align:left;width:122;background-color:#EEEEEE;padding:10 0 5 0;border-left:solid 1px #CCCCCC;border-right:solid 1px #CCCCCC;border-bottom:solid 1px #CCCCCC;"><div class="textSmallBlackBold">Sponsors:</div><div class="ff1 f9" style="padding-top:5;"><script>ad_dap(30,120,'&PG=NBCLB1&AP=1071');</script></div><div class="ff1 f9" style="padding-top:5;"><script>ad_dap(30,120,'&PG=NBCNB1&AP=1071');</script></div></div></div></div><div id="content" class="w649 fL clrR"><table cellpadding="0" cellspacing="0" border="0" width="649"><tr><td height="36" bgcolor="#26386B" class="ff1 cDEF p12"><span class="f65"><a href="/web/20060615215203/http://msnbc.msn.com/" class="lk1">MSNBC Home</a></span><span class="cFC0 b f70"> » </span><span class="f65"><a href="/web/20060615215203/http://msnbc.msn.com/id/3032619/" class="lk1">Nightly News</a></span></td></tr></table><table cellpadding="0" cellspacing="0" border="0" width="649"><tr><td width="526" valign="top"><map name="map3054422"><area coords="328,21,447,54" shape="rect" alt="Bookmark Nightly" href="javascript:addFavorite('https://web.archive.org/web/20060615215203/http://www.msnbc.msn.com/id/3032619','Nightly');"><area coords="447,19,515,54" shape="rect" alt="About us" href="/web/20060615215203/http://msnbc.msn.com/id/3689499/"><area coords="515,19,559,54" shape="rect" alt="Blog" href="https://web.archive.org/web/20060615215203/http://dailynightly.msnbc.com/"><area coords="559,19,645,54" shape="rect" alt="E-mail us" href="https://web.archive.org/web/20060615215203/mailto:nightly@nbc.com"></map><img border="0" src="https://web.archive.org/web/20060615215203im_/http://msnbcmedia.msn.com/i/msnbc/SiteManagement/SiteWide/Images/bantop_NN_060208.jpg" height="54" width="645" vspace="0" hspace="0" usemap="#map3054422"></td><td width="123" valign="top" bgcolor="#000033"> </td></tr></table><div class="clr"></div><a name="skipnav"></a><h1>FEMA relief rife with abuse, fraud, report says</h1><h2>Alleged scams cost taxpayers an estimated $1 billion</h2><div class="p14"><div id="finalPos"></div><div class="WCCol w300 fR clrR"><div style="padding-bottom:20px;"><script>getCSS("3088867")</script><div class="box_3088867" style="width:300;"><script></script><table width="300" cellspacing="0" cellpadding="0" class="boxH_3088867"><tr><td width="1%" class="boxHI_3088867"><img src="/web/20060615215203im_/http://msnbc.msn.com/images/icons/video.gif" width="20" height="14"></td><td width="*" nowrap="true" class="boxHC_3088867"><div class="textSmallBold">NBC VIDEO</div></td></tr></table><table width="300" cellspacing="0" cellpadding="0" class="boxB_3088867"><tr valign="top"><td><div style="height:100%;width:100%;background-color:#cccccc;background-image:url('/web/20060615215203im_/http://msnbc.msn.com/images/backgrounds/component_dkgrey.gif');text-align:center;"><a href="javascript:msnvDwd('00','8df8abf8-c584-4157-8df2-0477ea96515b','us','Source_Nightly News','','msnbc','','13302724','Massive FEMA fraud')"><img border="0" src="https://web.archive.org/web/20060615215203im_/http://msnbcmedia.msn.com/j/msnbc/Components/Video/060613/nn_reid_fraud_060613.300w.jpg" style="border:1px solid #000000;" vspace="0" hspace="0"></a><div><a href="javascript:msnvDwd('00','8df8abf8-c584-4157-8df2-0477ea96515b','us','Source_Nightly News','','msnbc','','13302724','Massive FEMA fraud')" onmouseout="VT_launchMouseOut('EAABFA')" onmouseover="VT_launchMouseOver('EAABFA')" onmousedown="VT_launchMouseDown('EAABFA')" onmouseup="VT_launchMouseUp('EAABFA')"><img src="/web/20060615215203im_/http://msnbc.msn.com/images/buttons/launch/buttonsLaunch_02.gif" alt="Launch" name="launch10" width="77" height="25" border="0" id="EAABFA" hspace="20"></a></div></div></td></tr><tr valign="top"><td class="boxBI_3088867"><div class="textHang"><span class="bulletRedSmall">• </span><span class="textMedBlackBold"><a href="javascript:msnvDwd('00','8df8abf8-c584-4157-8df2-0477ea96515b','us','Source_Nightly News','','msnbc','','13302724','Massive FEMA fraud')">Massive FEMA fraud</a></span><br><span class="textMed">June 13: A government report says FEMA relief fraud has cost taxpayers $1 billion. NBC's Chip Reid reports.</span></div><p class="credit">Nightly News</p></td></tr></table></div></div><div style="padding-bottom:20;"><link href="/web/20060615215203cs_/http://msnbc.msn.com/css/html40.css" rel="stylesheet" type="text/css"><script src="/web/20060615215203js_/http://msnbc.msn.com/js/std.js"></script><script>var cssList = new Array();</script><script>getCSS("3053751")</script><div class="box_3053751" style="width:300;"><table width="300" cellspacing="0" cellpadding="0" class="boxB_3053751"><tr valign="top"><td><a href="https://web.archive.org/web/20060615215203/http://dailynightly.msnbc.com/" target="_blank"><img border="0" src="https://web.archive.org/web/20060615215203im_/http://msnbcmedia.msn.com/i/msnbc/Components/Art/NIGHTLY/051104/tz300_DailyNightly.jpg" height="40" width="298" vspace="0" hspace="0" alt="The Daily Nightly"></a></td></tr><tr valign="top"><td class="boxBI_3053751"><div class="textMed mgbtm"><b>Get a behind-the-scenes look at how the news is gathered and reported. </b></div><p class="textMed"><a href="https://web.archive.org/web/20060615215203/http://dailynightly.msnbc.com/">Click here to read the blog of NBC Nightly News</a></p></td></tr></table></div></div><div style="padding-bottom:20;"><link href="/web/20060615215203cs_/http://msnbc.msn.com/css/html40.css" rel="stylesheet" type="text/css"><script src="/web/20060615215203js_/http://msnbc.msn.com/js/std.js"></script><script>var cssList = new Array();</script><script>getCSS("3053751")</script><div class="box_3053751" style="width:300;"><script></script><table width="300" cellspacing="0" cellpadding="0" class="boxH_3053751"><tr><td width="*" nowrap="true" class="boxHC_3053751"><div class="textSmallBold"> SIGN UP FOR DAILY E-MAIL NEWSLETTER</div></td></tr></table><table width="300" cellspacing="0" cellpadding="0" class="boxB_3053751"><tr valign="top"><td height="100%"><img border="0" src="https://web.archive.org/web/20060615215203im_/http://msnbcmedia.msn.com/i/msnbc/Components/Newsletters/Images/TZ150_Newsletter_Nightly2.gif" align="Left" height="90" width="140" vspace="0" hspace="0"></td><td class="boxBI_3053751"><p class="textMed"><form method="post" action="https://web.archive.org/web/20060615215203/http://www.msnbc.msn.com/newsletters.aspx"><table cellspacing="0" cellpadding="0" border="0" width="100%"><tr><td class="textMed"><b style="white-space:nowrap;">Your E-mail Address:</b></td></tr><tr><td valign="bottom"><input type="Text" name="EMail" size="11"><input type="Submit" value=" Go " style="font-size:10px;font-face:verdana;"><input type="Hidden" name="Newsletter" value="Nightly News"><input type="Hidden" name="NLID" value="13"><input type="Hidden" name="ListServ" value="true"><input type="Hidden" name="ListServName" value="NIGHTLY"><input type="Hidden" name="Action" value="submit"><p></p><span class="bulletRedSmall">• </span><a href="https://web.archive.org/web/20060615215203/http://www.msnbc.msn.com/id/7422001" class="textMed"><b>More Newsletters</b></a></td></tr></table></form></p></td></tr></table></div></div><div style="padding-bottom:20;"><link href="/web/20060615215203cs_/http://msnbc.msn.com/css/html40.css" rel="stylesheet" type="text/css"><script src="/web/20060615215203js_/http://msnbc.msn.com/js/std.js"></script><script>var cssList = new Array();</script><script>getCSS("3053751")</script><div class="box_3053751" style="width:300;"><script></script><table width="300" cellspacing="0" cellpadding="0" class="boxH_3053751"><tr><td width="*" nowrap="true" class="boxHC_3053751"><div class="textSmallBold"> <a href="https://web.archive.org/web/20060615215203/http://www.newsvips.com/R.aspx?a=11" target="_blank">NEWS MATTERS TO YOU</a></div></td></tr></table><table width="300" cellspacing="0" cellpadding="0" class="boxB_3053751"><tr valign="top"><td><a href="https://web.archive.org/web/20060615215203/http://www.newsvips.com/R.aspx?a=11" target="_blank"><img border="0" src="https://web.archive.org/web/20060615215203im_/http://msnbcmedia.msn.com/j/msnbc/Components/Partner Headline Boxes/zzArt/NewsVIP New Bug.300w.jpg" style="border:1px solid #000000;" vspace="0" hspace="0" alt="JOIN newsVIPs"></a></td></tr><tr valign="top"><td class="boxBI_3053751"><p class="textMed">Your opinion matters to us. Join our new News VIPs forum and express your opinions on the news. You could win $1000 just by signing up. <br><strong><a href="https://web.archive.org/web/20060615215203/http://www.newsvips.com/R.aspx?a=11" target="_blank"><strong>CLICK HERE TO JOIN</strong></a></strong></p></td></tr></table></div></div><div style="padding-bottom:20;"><link href="/web/20060615215203cs_/http://msnbc.msn.com/css/html40.css" rel="stylesheet" type="text/css"><script src="/web/20060615215203js_/http://msnbc.msn.com/js/std.js"></script><script>var cssList = new Array();</script><script>getCSS("3053751")</script><div class="box_3053751" style="width:300;"><script></script><table width="300" cellspacing="0" cellpadding="0" class="boxH_3053751"><tr><td width="*" nowrap="true" class="boxHC_3053751"><div class="textSmallBold"> Related Stories </div></td><td width="80%" class="boxH2C_3053751"><div class="textSmall"> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3303511/#Related Stories">What's this?</a></div></td></tr></table><table width="300" cellspacing="0" cellpadding="0" class="boxB_3053751"><tr valign="top"><td class="boxBI_3053751"><div class="textHang"><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><a href="/web/20060615215203/http://msnbc.msn.com/id/13317402/" id="gted" ce="Link-1">Report: FEMA Approved $1B In Bogus Claims</a></span></div></div></td></tr></table></div></div><div style="padding-bottom:20;"><link href="/web/20060615215203cs_/http://msnbc.msn.com/css/html40.css" rel="stylesheet" type="text/css"><script src="/web/20060615215203js_/http://msnbc.msn.com/js/std.js"></script><script>var cssList = new Array();</script><script>getCSS("3053751")</script><div class="box_3053751" style="width:300;"><script></script><table width="300" cellspacing="0" cellpadding="0" class="boxH_3053751"><tr><td width="*" nowrap="true" class="boxHC_3053751"><div class="textSmallBold"> Most Popular</div></td></tr></table><table width="300" cellspacing="0" cellpadding="0" class="boxB_3053751"><tr><td><table cellspacing="0" border="0" width="100%" cellpadding="0" class="headlineList2"><tr><td id="boxB_3053751_tab1" align="center"><span class="bulletRed" id="boxB_3053751_tab1_bt">• </span>Most Viewed</td><td><img scr="/images/cleardot.gif" width="2" height="1"></td><td id="boxB_3053751_tab2" align="center"><span class="bulletRed" id="boxB_3053751_tab2_bt">• </span>Top Rated</td><td><img scr="/images/cleardot.gif" width="2" height="1"></td><td id="boxB_3053751_tab3" align="center"><span class="bulletRed" id="boxB_3053751_tab3_bt">• </span>Most E-mailed</td></tr></table></td></tr><tr valign="top" id="boxB_3053751_tab1_c"><td class="boxBI_3053751"><div class="textHang"><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><a href="/web/20060615215203/http://msnbc.msn.com/id/13348456/" id="gted" ce="Link-1">Bill Gates to transition away from Microsoft</a></span></div><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><a href="/web/20060615215203/http://msnbc.msn.com/id/12874131/" id="gted" ce="Link-1">Prostate cancer, taking a leak and being a man</a></span></div><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><a href="/web/20060615215203/http://msnbc.msn.com/id/13328579/" id="gted" ce="Link-1">‘Living fossil’ rat caught on tape</a></span></div><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><a href="/web/20060615215203/http://msnbc.msn.com/id/13342029/" id="gted" ce="Link-1">Waterfowl fossils fill in a big missing link</a></span></div><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><a href="/web/20060615215203/http://msnbc.msn.com/id/13332944/" id="gted" ce="Link-1">U.S. ID's al-Qaida in Iraq boss, launches raids</a></span></div><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><b><a href="/web/20060615215203/http://msnbc.msn.com/id/7468311/">Most viewed on MSNBC.com</a></b></span></div></div></td></tr><tr valign="top" id="boxB_3053751_tab2_c" style="display:none;"><td class="boxBI_3053751"><div class="textHang"><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><a href="/web/20060615215203/http://msnbc.msn.com/id/13272568/" id="gted" ce="Link-1">Everest climbers recall near-death experience</a></span></div><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><a href="/web/20060615215203/http://msnbc.msn.com/id/13319120/site/newsweek/" id="gted" ce="Link-1">Supporting the Troops</a></span></div><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><a href="/web/20060615215203/http://msnbc.msn.com/id/13282896/" id="gted" ce="Link-1">Whale-hunting nations gain momentum</a></span></div><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><a href="/web/20060615215203/http://msnbc.msn.com/id/13305110/" id="gted" ce="Link-1">Tiger will ‘go out there and grind’ to honor dad</a></span></div><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><a href="/web/20060615215203/http://msnbc.msn.com/id/13208662/" id="gted" ce="Link-1">Cadaver tissue poses growing risk to the living</a></span></div><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><b><a href="/web/20060615215203/http://msnbc.msn.com/id/7468311/">Most viewed on MSNBC.com</a></b></span></div></div></td></tr><tr valign="top" id="boxB_3053751_tab3_c" style="display:none;"><td class="boxBI_3053751"><div class="textHang"><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><a href="/web/20060615215203/http://msnbc.msn.com/id/13348456/" id="gted" ce="Link-1">Bill Gates to transition away from Microsoft</a></span></div><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><a href="/web/20060615215203/http://msnbc.msn.com/id/12874131/" id="gted" ce="Link-1">Prostate cancer, taking a leak and being a man</a></span></div><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><a href="/web/20060615215203/http://msnbc.msn.com/id/13328579/" id="gted" ce="Link-1">‘Living fossil’ rat caught on tape</a></span></div><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><a href="/web/20060615215203/http://msnbc.msn.com/id/13342029/" id="gted" ce="Link-1">Waterfowl fossils fill in a big missing link</a></span></div><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><a href="/web/20060615215203/http://msnbc.msn.com/id/13344990/" id="gted" ce="Link-1">Rising deaths blamed on painkiller patch abuse</a></span></div><div style="padding-bottom:3px"><span class="bulletRedSmall">• </span><span class="textMed"><b><a href="/web/20060615215203/http://msnbc.msn.com/id/7468311/">Most viewed on MSNBC.com</a></b></span></div></div></td></tr></table><script>pop_pushTabBox('boxB_3053751');</script></div></div></div><div class="CCol w160 fR clrR"></div><div class="mR165"><div><div class="textMedBlackBold">By Chip Reid</div><div class="textMedBlack">Correspondent</div><div class="textMedBlack">NBC News</div><div class="textTimestamp"><div id="udtD">Updated: 7:34 p.m. ET June 13, 2006</div><script language="javascript"> function UpdateTimeStamp(pdt) { var n = document.getElementById("udtD"); if(pdt != '' && n && window.DateTime) { var dt = new DateTime(); pdt = dt.T2D(pdt); if(dt.GetTZ(pdt)) {n.innerHTML = dt.D2S(pdt,((''.toLowerCase()=='false')?false:true));} } } UpdateTimeStamp('632858384780530000'); </script></div></div><p class="textBodyBlack"><table cellpadding="0" cellspacing="0" border="0" align="left" style="padding:5 15 0 0;"><tr><td><script>getCSS("3159408")</script><div class="box_3159408" style="width:102;"><script></script><table width="102" cellspacing="0" cellpadding="0" class="boxH_3159408"><tr><td width="1%" class="boxHI_3159408"><img border="0" src="https://web.archive.org/web/20060615215203im_/http://msnbcmedia.msn.com/i/msnbc/Test-Dev/donna/msnbc10/Launch images/byline_nbcnews.gif" height="20" width="100" vspace="0" hspace="0"></td><td width="*" nowrap="true" class="boxHC_3159408"><div class="textSmallBold"></div></td></tr></table><table width="102" cellspacing="0" cellpadding="0" class="boxB_3159408"><tr valign="top"><td><img border="0" src="https://web.archive.org/web/20060615215203im_/http://media.msnbc.msn.com/j/msnbc/Components/Bylines/mugs/NBC News/nbc_reid_chip.thumb.jpg" style="border:1px solid #666666;" vspace="0" hspace="0"></td></tr><tr valign="top"><td class="boxBI_3159408"><div class="textMed"><b>Chip Reid</b></div><div class="credit">Correspondent</div><hr size="1" width="85%" color="#cccccc" align="center"><div><span class="bulletRedSmall">• </span><span class="textMed"><a href="/web/20060615215203/http://msnbc.msn.com/id/3689013/">Profile</a></span></div></td></tr></table><table width="102" cellspacing="0" cellpadding="0" class="boxF_3159408"><tr><td class="boxFI_3159408"><div class="textSmall"></div></td></tr></table></div></td></tr></table>WASHINGTON - As requests for emergency assistance poured in after Hurricane Katrina, one applicant listed as his address the Greenwood Cemetery in New Orleans. FEMA promptly issued a check for $2,358 for rental assistance.</p><p class="textBodyBlack"><span id="byLine"></span>That's just one of thousands of examples of alleged fraud and abuse described in a new report by the investigative arm of congress — abuse that cost taxpayers about $1 billion.</p><p class="textBodyBlack"><span id="byLine"></span>“The examples are so egregious,” says Sen. Susan Collins, R-Maine, and chairman of the Homeland Security Committee, “that what they tell us is that FEMA didn't perform even basic checks to safeguard taxpayers' money.”</p><div class="aC"><div class="textSmallGrey w320"><a href="#storyContinued">Story continues below ↓</a><hr noshade size="1"> advertisement <div style="padding:0 10 10 10;"><script>ad_dap(250,300,'&PG=NBCMSN&AP=1089');</script></div><hr noshade size="1"></div></div><a name="storyContinued"></a><p class="textBodyBlack"><span id="byLine"></span>One person applied for aid 13 times, using 13 bogus addresses, and received a total of $139,000.</p><p class="textBodyBlack"><span id="byLine"></span>The report says FEMA didn't even try to verify the identity of people who applied for aid by phone and says FEMA's fraud controls are “weak or nonexistent.”</p><p class="textBodyBlack"><span id="byLine"></span>More than 2,000 people applied for aid from prison and received about $12 million.</p><p class="textBodyBlack"><span id="byLine"></span>The report also finds that FEMA debit cards, which were supposed to be used for necessities, were used for a week-long Caribbean vacation, a $600 tab at a gentleman's club and a visit to Hooters, which included a $200 bottle of champagne.</p><p class="textBodyBlack"><span id="byLine"></span>Former FEMA official John Copenhaver says in the rush to get money to victims, mistakes are inevitable. </p><p class="textBodyBlack"><span id="byLine"></span>"Any time you have to balance speed of assistance with accuracy, you're going to have problems," Copenhaver says.</p><p class="textBodyBlack"><span id="byLine"></span>In a statement Tuesday, FEMA says it's “already reforming capabilities for how it will serve disaster victims this storm season.” </p><p class="textBodyBlack"><span id="byLine"></span>But Sen. Collins says the fraud is so pervasive she doubts FEMA will be ready for a hurricane season that's already here.</p><div class="textBodyBlack"><i><em>© 2006 MSNBC Interactive</em></i></div><div class="userRating t1 b f11 c000" style="margin-top:20px;"><nobr> Rate this story </nobr><span style="white-space:wrap;"></span><nobr> Low <span id="URplace"></span> High </nobr></div><span class="t1 f11 c000" style="display:none" id="userRatingTotal"></span><span> </span><span class="bulletRedSmall"> • </span><a href="/web/20060615215203/http://msnbc.msn.com/id/7468311/" class="t1 b f11 c000">View Top Rated stories</a><br><script>moveURCode();</script><br><div class="textMedBlack doThis" style="text-align:center"><span class="dSp"><a href="javascript:printThis('13304506')"><img border="0" class="dIc" src="/web/20060615215203im_/http://msnbc.msn.com/images/msnbc/print02.gif"></a> <a href="javascript:printThis('13304506')">Print this</a></span><span class="dSp"><a href="javascript:emThis('13304506')"><img border="0" class="dIc" src="/web/20060615215203im_/http://msnbc.msn.com/images/msnbc/email02.gif"></a> <a href="javascript:emThis('13304506')">Email this</a></span><span class="dSp" id="blogThis" style="display:none"> <a href="javascript:blogThis('13304506')" title="Add to your blog on MSN Spaces"><img border="0" class="dIc" src="/web/20060615215203im_/http://msnbc.msn.com/images/msnbc/blog02.gif"></a> <a href="javascript:blogThis('13304506')" title="Add to your blog on MSN Spaces">Blog this</a></span><span class="dSp" id="imThis"> <a href="javascript:IMThis('13304506')" title="Send this story with MSN Messenger"><img border="0" class="dIc" src="/web/20060615215203im_/http://msnbc.msn.com/images/msnbc/icon_IM.gif"></a> <a href="javascript:IMThis('13304506')" title="Send this story with MSN Messenger">IM this</a></span></div><script>blogCheck();</script><img width="100%" height="0"><div style="padding-top:20px"><script>getCSS("3053751")</script><div class="box_3053751" style="width:100%;"><script></script><table width="100%" cellspacing="0" cellpadding="0" class="boxH_3053751"><tr><td width="*" nowrap="true" class="boxHC_3053751"><div class="textSmallBold"> MORE FROM NIGHTLY NEWS </div></td><td width="80%" class="boxH2C_3053751"><div class="textSmall"> </div></td></tr></table><table width="100%" cellspacing="0" cellpadding="0" class="boxB_3053751"><tr valign="top"><td><div style="width:100%;background-color:#ffffff;height:100%;"><div style="padding:10px;width:16%;height:100%;float:left;"><span id="StoryNextButton" cm="StoryNextButton"><a id="gted" ce="Nightly News" onmouseover="swapImage('next_links','/images/buttons/next/buttonNextOver.gif')" onmouseout="swapImage('next_links','/images/buttons/next/buttonNext.gif')" onmousedown="swapImage('next_links','/images/buttons/next/buttonNextDown.gif')" href="/web/20060615215203/http://msnbc.msn.com/id/3032619/"><img src="/web/20060615215203im_/http://msnbc.msn.com/images/buttons/next/buttonNext.gif" border="0" width="53" height="19" id="next_links"></a></span></div><div id="nextText" class="textMedBlackBold fL p11">Nightly News Section Front</div></div></td></tr><tr valign="top"><td class="boxBI_3053751"><span cm="StoryNextLink"><div id="nxtStry1" style="width:100%;height:18;"><div class="textHang nxtStryPd"><span class="bulletRedSmall">• </span><span class="headlineList2"><a class="linkBlack" href="/web/20060615215203/http://msnbc.msn.com/id/13326781/" id="gted" ce="1">Report: FEMA bilked for $1 billion</a></span></div></div><div id="nxtStry2" style="width:100%;height:18;"><div class="textHang nxtStryPd"><span class="bulletRedSmall">• </span><span class="headlineList2"><a class="linkBlack" href="/web/20060615215203/http://msnbc.msn.com/id/13326810/" id="gted" ce="2">Breastfeeding ads spark old debate</a></span></div></div><div id="nxtStry3" style="width:100%;height:18;"><div class="textHang nxtStryPd"><span class="bulletRedSmall">• </span><span class="headlineList2"><a class="linkBlack" href="/web/20060615215203/http://msnbc.msn.com/id/13304506/" id="gted" ce="3">Nightly: FEMA relief rife with abuse, fraud, report says</a></span></div></div><div id="nxtStry4" style="width:100%;height:18;"><div class="textHang nxtStryPd"><span class="bulletRedSmall">• </span><span class="headlineList2"><a class="linkBlack" href="/web/20060615215203/http://msnbc.msn.com/id/13304867/" id="gted" ce="4">Nightly: Increasing adoptions: Good idea gone wrong?</a></span></div></div><div id="nxtStry5" style="width:100%;height:18;"><div class="textHang nxtStryPd"><span class="bulletRedSmall">• </span><span class="headlineList2"><a class="linkBlack" href="/web/20060615215203/http://msnbc.msn.com/id/13285598/" id="gted" ce="5">Type 2 diabetes grows as public health threat</a></span></div></div><div id="nxtStry6" style="width:100%;height:18;"><div class="textHang nxtStryPd"><span class="bulletRedSmall">• </span><span class="headlineList2"><a class="linkBlack" href="/web/20060615215203/http://msnbc.msn.com/id/13285581/" id="gted" ce="6">Palestinian girl keeps a painful secret</a></span></div></div><div id="nxtStry7" style="width:100%;height:18;"><div class="textHang nxtStryPd"><span class="bulletRedSmall">• </span><span class="headlineList2"><a class="linkBlack" href="/web/20060615215203/http://msnbc.msn.com/id/13231493/" id="gted" ce="7">What’s next for al-Qaida?</a></span></div></div><div id="nxtStry8" style="width:100%;height:18;"><div class="textHang nxtStryPd"><span class="bulletRedSmall">• </span><span class="headlineList2"><a class="linkBlack" href="/web/20060615215203/http://msnbc.msn.com/id/13230202/" id="gted" ce="8">Home-schooler teaches others to read</a></span></div></div><div id="nxtStry9" style="width:100%;height:18;"><div class="textHang nxtStryPd"><span class="bulletRedSmall">• </span><span class="headlineList2"><a class="linkBlack" href="/web/20060615215203/http://msnbc.msn.com/id/13211373/" id="gted" ce="9">How the U.S. found Zarqawi</a></span></div></div><div id="nxtStry10" style="width:100%;height:18;"><div class="textHang nxtStryPd"><span class="bulletRedSmall">• </span><span class="headlineList2"><a class="linkBlack" href="/web/20060615215203/http://msnbc.msn.com/id/13210745/" id="gted" ce="10">Mixed reaction to Zarqawi’s death in Jordan</a></span></div></div></span><div style="width:100%;height:16;"><div class="textHang nxtStryPd"><span class="bulletRedSmall">• </span><span class="headlineList2"><a class="linkBlack" href="/web/20060615215203/http://msnbc.msn.com/id/3032619/">Nightly News Section Front</a></span></div></div><span class="textSmall"> </span></td></tr></table><table width="100%" cellspacing="0" cellpadding="0" class="boxF_3053751"><tr><td class="boxFI_3053751"><div class="textSmall"></div></td></tr></table></div><script>nextStory("/id/13326781/^Report: FEMA bilked for $1 billion|/id/13326810/^Breastfeeding ads spark old debate|/id/13304506/^Nightly: FEMA relief rife with abuse, fraud, report says|/id/13304867/^Nightly: Increasing adoptions: Good idea gone wrong?|/id/13285598/^Type 2 diabetes grows as public health threat|/id/13285581/^Palestinian girl keeps a painful secret|/id/13231493/^What’s next for al-Qaida?|/id/13230202/^Home-schooler teaches others to read|/id/13211373/^How the U.S. found Zarqawi|/id/13210745/^Mixed reaction to Zarqawi’s death in Jordan|");</script></div><div class="clr fL w464"><div class="fL w225 p15"><span cm=""><script>getCSS("3182775")</script><div class="box_3182775" style="width:100%;"><script></script><table width="100%" cellspacing="0" cellpadding="0" class="boxH_3182775"><tr><td width="1%" class="boxHI_3182775"><img border="0" src="https://web.archive.org/web/20060615215203im_/http://msnbcmedia.msn.com/j/msnbc/Test-Dev/donna/msnbc10/Launch images/top_msnbc.gif,standard.jpg" vspace="0" hspace="0"></td><td width="*" nowrap="true" class="boxHC_3182775"><div class="textSmallBold"></div></td></tr></table><table width="100%" cellspacing="0" cellpadding="0" class="boxB_3182775"><tr valign="top"><td class="boxBI_3182775"><div class="textHang" style="padding-bottom:3px;"><span class="bulletRedSmall">• </span><span class="headlineList2"><a href="/web/20060615215203/http://msnbc.msn.com/id/13237981/" id="gted" ce="1">U.S. death toll in Iraq hits 2,500</a></span></div><div class="textHang" style="padding-bottom:3px;"><span class="bulletRedSmall">• </span><span class="headlineList2"><a href="/web/20060615215203/http://msnbc.msn.com/id/13306324/" id="gted" ce="2">WP: Measure forces debate on war</a></span></div><div class="textHang" style="padding-bottom:3px;"><span class="bulletRedSmall">• </span><span class="headlineList2"><a href="/web/20060615215203/http://msnbc.msn.com/id/13300363/" id="gted" ce="3">Bush unveils biggest marine reserve</a></span></div><div class="textHang" style="padding-bottom:3px;"><span class="bulletRedSmall">• </span><span class="headlineList2"><a href="/web/20060615215203/http://msnbc.msn.com/id/13337366/" id="gted" ce="4">N. California feels quake</a></span></div><div class="textHang" style="padding-bottom:3px;"><span class="bulletRedSmall">• </span><span class="headlineList2"><a href="/web/20060615215203/http://msnbc.msn.com/id/13332522/" id="gted" ce="5">Separated twins 'doing great'</a></span></div></td></tr></table></div></span></div><div class="fR w225 p15"><span cm=""><script>getCSS("3182775")</script><div class="box_3182775" style="width:100%;"><script></script><table width="100%" cellspacing="0" cellpadding="0" class="boxH_3182775"><tr><td width="1%" class="boxHI_3182775"><img border="0" src="https://web.archive.org/web/20060615215203im_/http://msnbcmedia.msn.com/j/msnbc/Test-Dev/donna/msnbc10/Launch images/tv_highlights.gif,standard.jpg" vspace="0" hspace="0"></td><td width="*" nowrap="true" class="boxHC_3182775"><div class="textSmallBold"></div></td></tr></table><table width="100%" cellspacing="0" cellpadding="0" class="boxB_3182775"><tr valign="top"><td class="boxBI_3182775"><div class="textHang" style="padding-bottom:3px;"><span class="bulletRedSmall">• </span><span class="headlineList2"><a href="/web/20060615215203/http://msnbc.msn.com/id/3080261/" id="gted" ce="1">MSNBC-TV Question of the Day</a></span></div><div class="textHang" style="padding-bottom:3px;"><span class="bulletRedSmall">• </span><span class="headlineList2"><a href="javascript:msnvDwd('00','69c0c52a-60a2-4293-bfaa-f2d5d2169ee1','us','News_Comment - Analysis','','msnbc','','13305844','Reprieve for Rove ... and Bush')">‘Hardball’: Reprieve for Rove, Bush</a></span></div><div class="textHang" style="padding-bottom:3px;"><span class="bulletRedSmall">• </span><span class="headlineList2"><a href="javascript:msnvDwd('00','21133180-a5ea-43c4-aa87-f7e94e943be2','us','News_Comment - Analysis','','msnbc','','13307258','Daryl Hannah up a tree')">Scarborough: Daryl H. talks tree</a></span></div><div class="textHang" style="padding-bottom:3px;"><span class="bulletRedSmall">• </span><span class="headlineList2"><a href="javascript:msnvDwd('00','0b48bbc5-7a5c-406b-a810-10bbf8345980','us','','','msnbc','','13309194','Are you white trash?')">Carlson: White trash etiquette</a></span></div><div class="textHang" style="padding-bottom:3px;"><span class="bulletRedSmall">• </span><span class="headlineList2"><a href="javascript:msnvDwd('00','c09af71a-a851-4101-ae43-f4aa1386119d','us','','','msnbc','','13308254','How to be a supermodel')">Cosby: From '10' to supermodel</a></span></div></td></tr></table></div></span></div></div><div class="textSmallGrey p2">advertisement</div><div class="eshopStory"><script src="https://web.archive.org/web/20060615215203js_/http://shopping.msn.com/i/ptnrContent.aspx?ptnrId=1&ptnrData=100210&mapKey=Techbottom"></script></div><div class="w460 clr"></div><div class="w460 clr"><div style="font-family : Verdana, Arial, Geneva, Helvetica, sans-serif;padding-top:15px;"><script language="javascript" src="https://web.archive.org/web/20060615215203js_/http://context3.kanoodle.com/cgi-bin/context.cgi?id=78053631&db=context&query=*general_network&cgroup=tvnightly&format=table&numresults=5&width=459&bordercolor=7788AA&fillcolor=FFFFFF&title=1&signup=1&newtarget=1&fontsize=10px"></script></div></div></div></div></div></div><div id="banbot" class="w779 p5 aC clr"><div style="padding-bottom:20;"><hr id="foothr" width="758" color="#000000" noshade="true" size="1"/><div class="bb" style="padding: 10 0 8 0;"><a href="/web/20060615215203/http://msnbc.msn.com/">Cover</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3032525/">U.S. News</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3032507/">World News</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3032072/">Business</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3032113/">Sports</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3032118/">Tech/Science</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3032084/">Entertainment</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3032123/">Travel</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3032076/">Health</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3032105/">Blogs Etc.</a> | <a href="https://web.archive.org/web/20060615215203/http://www.msnbc.msn.com/id/3362034/">Weather</a> | <a href="https://web.archive.org/web/20060615215203/http://msnbc.msn.com/id/3098358/">Local News</a></div><div class="bb"><a href="/web/20060615215203/http://msnbc.msn.com/id/3032542/site/newsweek/">Newsweek</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3032633/">Today Show</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3032619/">Nightly News</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3032600/">Dateline NBC</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3032608/">Meet the Press</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3096434/">MSNBC TV</a></div><div class="bb" style="padding: 22 0 8 0;"><a href="/web/20060615215203/http://msnbc.msn.com/id/3303510/">About MSNBC.com </a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/7422001/">Newsletters</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/5216556/">RSS</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/8132577/">Podcasts</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3303511/">Help</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3152772/">News Tools</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3303596/">Jobs at MSNBC.com</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/10285339/">Contact Us</a> | <a href="/web/20060615215203/http://msnbc.msn.com/id/3303540/">Terms & Conditions</a> | <a href="https://web.archive.org/web/20060615215203/http://privacy.msn.com/">Privacy</a></div><div class="bb" style="padding=0 0 8 0;"><a href="/web/20060615215203/http://msnbc.msn.com/">© 2006 MSNBC.com</a></div></div></div><div class="container" id="foot"><ul id="legal"><li>© 2006 Microsoft</li><li><a href="https://web.archive.org/web/20060615215203/http://g.msn.com/0nwenus0/AE/20?SU=http://msnbc.msn.com/" rel="nofollow">MSN Privacy</a></li><li><a href="https://web.archive.org/web/20060615215203/http://g.msn.com/0nwenus0/AE/18?SU=http://msnbc.msn.com/" rel="nofollow">Legal</a></li><li class="last"><a href="https://web.archive.org/web/20060615215203/http://g.msn.com/0nwenus0/AE/19?SU=http://msnbc.msn.com/" rel="nofollow">Advertise</a></li></ul><ul id="support"><li><script language="javascript" src="https://web.archive.org/web/20060615215203js_/http://hp.msn.com/scr/op/ol-fdbkv3_r1.js"></script><a href="javascript:O_LC();">Feedback</a></li><li class="last"><span class="bar">|</span>    <a href="https://web.archive.org/web/20060615215203/http://www.msnbc.msn.com/id/3303511/">Help</a></li></ul></div></div><div id="DCol" class="DCol"><div><div style="width:152;overflow:hidden;"><div style="text-align:center;width:160;" class="textSmallGrey">advertisement</div><div class="AdEShopHead">Shopping on MSN</div><div class="AdEShopMain"><script language="JavaScript" src="https://web.archive.org/web/20060615215203js_/http://shopping.msn.com/i/ptnrContent.aspx?ptnrId=1&ptnrData=10021&mapKey=Tech"></script></div></div></div><div><br></div><script>msnSideBar();</script></div><div id="AdOverThePageDiv"></div></div></body></html>