Feds nab another local for Red Cross fraud

Published 12:00 am Tuesday, November 3, 2009

By ROBIN SHANNON

L’Observateur

NEW ORLEANS – A LaPlace woman entered a guilty plea in federal court Thursday to accusations that she fraudulently obtained more than $17,000 in hurricane disaster relief from the American Red Cross.

Dionne Garrett, 30, pleaded guilty to one count of wire fraud related to a series of fraudulent applications for financial assistance filed with the Red Cross following Hurricanes Katrina and Rita, according to a release from U.S. Attorney Jim Letten’s Office. Garrett entered her plea before U.S. District Judge Mary Ann Vial Lemmon.

Court documents show Garrett admitted to applying for and receiving disaster assistance funds 16 times between Sept. 9, 2005, and Oct. 6, 2005. Garrett repeatedly applied for the one-time assistance and indicated each time she had not received any money from the Red Cross.

Hurricane Katrina made landfall in Louisiana on Aug. 29, 2005. Hurricane Rita, which came ashore along the Louisiana-Texas coastline, struck on Sept. 24, 2005. In response to the storms, the Red Cross offered one-time assistance of up to $1,565 for residents of the area affected by the storms.

Garrett, who will be sentenced on Jan. 28, 2010, faces a maximum of 20 years in jail, an additional three years supervised release, a fine of $250,000 and an additional amount of restitution determined by Lemmon.

The case was investigated by the U. S. Attorney’s office and the FBI. Assistant U.S. Attorney Jordan Ginsberg handled the prosecution.