Analysis:

This story looks at fraud related to the relief efforts around Hurricane Katrina. Most the story is devoted to covering fraud committed by individual actors. For example, there is footage of an older woman who is being put in a police car for falsely claiming to be a Katrina victim. Viewers are also told about Red Cross volunteers stealing debit cards intended for hurricane victims. This is reported in rather subjective language, with the reporter stating “We’ve seen the heroes, now come the villains, the petty crooks and big time thieves who have gone after the sixty plus billion dollars of federal aid and millions more donated to charities.” Interviewed in the piece is a representative from the American Red Cross and also an Assistant Attorney General from the US Justice Department. Neither of the statements by these two people provides the viewer with any concrete details about fraud of relief monies, rather they are general statements expressing disappointment that people would engage in defrauding victims.

There are several issues related to this topic that was not included in this story. One thing that was glossed over was the issue of large scale waste and fraud. In the piece there is a statement provided by Danielle Brian from the Project on Government Oversight. She is shown saying “Rather than the big picture, multi-million, ten million dollar crimes, that’s what we’re more concerned about.” The reporter then follows that quote saying “But what about the price gouging contractors, the sweetheart deals for the politically connected. Sadly it would seem the fallout from Katrina stretches from coast to battered coast”. That's how the story ends. While the reporter raises this issue of large scale fraud perpetrated by companies and governmental agencies, no examples or details are provided. Nor is any data provided on the scale of the fraud, or how the individual examples which the story focuses on compare in terms of dollars wasted to the large scale scams alluded to but left unexplored by the reporter.

Story:

WXMI 17 News reader – Earlier this week federal investigators announced the arrests of several people in California accused of trying to cheat the Red Cross out of money intended for Hurricane Katrina victims. It’s only the latest in a string of similar revelations. National correspondent Grant Rampy joins us live from our news center in Washington tonight with more, Grant.

Reporter – Evening Rachel, we probably shouldn’t be shocked there are always creeps who come out of the woodwork to prey on those who are down on their luck. In Katrina’s wake, same story new victims.

Reporter – We’ve seen the heroes, now come the villains, the petty crooks and big time thieves who have gone after the sixty plus billion dollars of federal aid and millions more donated to charities, all of which was intended to help the displaced and the distraught. This woman’s accused of posing as an evacuee.

Woman in handcuffs – Someone set it up and I’m stupid enough to go do it, like a fool.

Reporter – In Texas a Red Cross volunteer charged with stealing debit cards meant for storm victims. In California twenty-two people contracted to work at this Red Cross call center, are accused of filing three hundred thousand dollars worth of false claims.

Laura Howe (Red Cross) - It’s terribly disappointing and disheartening that anyone would want to take something away from people who need help and need it so badly.

John Conklin (Asst. US Attorney General) – Unfortunately the fraud schemes are ever present and in this case, while we hoped nobody would be willing to take advantage of this situation, people have.

Reporter – there are the phony evacuees, phony charities, phony insurance claims, the Justice department set up a special taskforce just to deal with all the scandals.

Alberto Gonzales (US Attorney General) – What we’ve witnessed, the actions of a few.

Reporter – but one government watchdog says the feds are too focused on going after small timers.

Danielle Brian (Project on govt. oversight) - Rather than the big picture, multi-million, ten million dollar crimes, that’s what we’re more concerned about.

Reporter – The American Red Cross insists instances of fraud represent a small percentage of the overall contributions that have been made to its organization. But what about the price gouging contractors, the sweetheart deals for the politically connected. Sadly it would seem the fallout from Katrina stretches from coast to battered coast.

Reporter – And the Red Cross says it is taking a two fold approach to fighting fraud. Its expanding the search for scammers and at the same time providing new systems that make it easier to detect fraud in the future. Live in Washington, Grant Rampy, FOX 17 news at ten.

Total time: 2 minutes 23 seconds