Louisiana AG investigating Red Cross over Katrina fraud accusations

[JURIST] Louisiana Attorney General Charles Foti, Jr. [official website] Monday announced an investigation into the American Red Cross [official website] over accusations that some of its volunteers stole money from Hurricane Katrina [JURIST news archive] relief efforts. Foti reportedly opened the investigation after Red Cross officials told Congress that it was reviewing reports of theft. Foti has asked for information from the organization on three volunteers fired by Red Cross. The Attorney General's office has a news release on the investigation, as well as another inquiry [news release] opened into the Humane Society.

The Red Cross announced last week that it was investigating allegations of mismanagement [news release] of funds by volunteers. The organization has been under pressure from Sen. Chuck Grassley [official website; news release] to change its operating procedures to avoid fraud. Federal authorities indicted almost 50 Red Cross employees [JURIST report] late last year on fraud charges for stealing relief funds. AP has more.

 

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