Foul play in Katrina, Rita relief operations

Everyone loves a good disaster More than US $2 billion has been defrauded in Hurricane Katrina and Rita relief operations. The amount is nearly 11 per cent of the total funds spent by the Federal Emergency Management Agency on relief and rehabilitation for the hurricanes that hit the US in mid-June 2005.

Federal prosecutors have filed hurricane-related criminal charges against 335 individuals -- a record number of indictments from a single hurricane season. Red Cross officials are also investigating at least 7,100 cases of possible fraud. Congressional investigators have referred another 7,000 cases of possible fraud. Investigators say, several more may be charged before the five-year statute of limitations on most of these crimes expires.