WP: Red Cross Refers Katrina Relief Probe to FBI

[DeepModem Mom]

Red Cross Refers Katrina Relief Probe to FBI
By Jacqueline L. Salmon
Washington Post Staff Writer
Thursday, March 30, 2006

The American Red Cross, plagued by continuing controversy over its handling of its Hurricane Katrina relief effort, said today it is turning over the results of its investigation into a New Orleans warehouse and feeding operation to the FBI.

The charity -- which raised $2.1 billion from the public for victims of hurricanes Katrina, Rita and Wilma -- was embarrassed last week when Red Cross volunteers who had served after Katrina alleged that workers at warehouses and kitchens diverted money and supplies meant for hurricane victims....

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Jerome Nickerson, a Baltimore attorney who initially investigated allegations of misconduct at the warehouse and kitchen operations in New Orleans at the request of Red Cross officials, said he was forced off the investigation when he tried to present his findings to the charity in December.

Nickerson said his probe found "rogue warehouses" filled with Red Cross supplies that they believed were being sold and a Red Cross kitchen in New Orleans that was ordering supplies that clearly weren't needed.

The Red Cross, which is required by the federal government to provide food, shelter and medical care to victims of disasters in the United States, has been in turmoil in the months since the hurricanes....

http://www.washingtonpost.com/wp-dyn/content/article/2006/03/30/AR2006033000936.html