Hurricane Katrina Fraud Perpetrators Will Pay $4 Million
May 9, 2009
On April 24, 2009, the Department of Justice released the settlement of a False Claims Act case involving Lighthouse Disaster Relief and its partners, Gary Heldreth and Kerry Farmer, in their conduct surrounding Hurricane Katrina.
Lighthouse, Heldreth and Farmer were alleged to have accepted $5.3 million for work they did not complete. They allegedly breached a contract with the Department of Homeland Security to build and operate a base camp to house and feed first responders of the recovery efforts in New Orleans following Hurricane Katrina. The defendants were alleged to have made false statements to FEMA employees in order to be paid prematurely, then failed to build a base-camp fulfilling the agreements of their contract.
Lighthouse, Heldreth and Farmer will pay $4 million in addition to the $1.3 million already collected by the government.
“This settlement demonstrates that the United States will aggressively pursue those who exploit the taxpayers in times of disaster,” said Tony West, Assistant Attorney General for the Civil Division.
If you are witnessing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.
