Fraud related to disaster benefits carries a maximum sentence of 30 years in federal prison
Three individuals, including two from Southern California and one from Texas, have been charged with fraudulently seeking federal disaster relief funds by falsely claiming their properties were damaged in the Eaton and Palisades wildfires, federal authorities announced Wednesday.
The defendants allegedly submitted fraudulent applications to the Federal Emergency Management Agency (FEMA) for benefits meant for victims of the wildfires, which broke out on January 7, burned nearly 60,000 acres, destroyed more than 16,000 structures, and resulted in 29 deaths. In response, FEMA launched a relief program offering financial assistance, including a one-time $750 payment, up to $43,600 for additional needs, and housing aid for up to 18 months. Homeowners could also apply for up to $43,600 in repair funds.
Federal investigators say the three suspects exploited this program by submitting fraudulent claims based on false reports of damaged personal property, lost vehicles, and fabricated medical or relocation expenses. Acting U.S. Attorney Joseph McNally said the scheme diverted much-needed resources from real wildfire victims. “These false claims resulted in badly needed disaster-relief money being denied to actual wildfire victims while these defendants allegedly used property information to illegally line their own pockets,” McNally said.
Authorities allege that one of the defendants,...
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