katrina scam?

[MrBern]

2 unrepentant about selling Katrina gift
WOODY BAIRD, Associated Press Writer
MEMPHIS, Tenn. - A church that wanted to do something special for Hurricane Katrina victims gave a $75,000 house, free and clear, to a couple who said they were left homeless by the storm. But the couple turned around and sold the place without ever moving in, and went back to New Orleans.

"Take it up with God," an unrepentant Joshua Thompson told a TV reporter after it was learned that he and the woman he identified as his wife had flipped the home for $88,000.


foll story:
http://news.yahoo.com/s/ap/20061122/ap_on_re_us/katrina_gift_house

 

[Elaina]

Katrina is very touchy for me. My lease on an apartment came up a few months after, and the property manager started making the place unbearable for the non-Katrina residents. They were making more money for displaced, and a governement boost. When the lease came up, we were told it had to go to a Katrina family. Several things happened that because of Katrina that left me very bitter about the whole thing. While I feel sorry for them, I also was left with a bad taste from it myself.

 

[John in Covina]

Free $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$!!!

They were making more money for displaced, and a governement boost.

******
This is one of the problems about government and spending, so many people look at the dollars and figure, this is free money, you'd be a fool to pass it up.
The unintended consiquences are going to continue to add up for a long time on Katrina.

 

[scotrace]

Well, the thing about giving something is that it becomes the property of the recipient to do with as they please. They could have set the place ablaze if they wanted. Maybe I am missing the point, but it doesn't seem particularly horrid to convert the windfall to cash so they can get back home to where they want to be.

Not that I would name any children after them... but I can see the motivation.

 

[Paisley]

The story says it's unclear whether the couple original house was really destroyed. But if they had a house, where was their flood insurance?

Be that as it may, this is exactly why a person needs to be careful about whom they give charity to. Time was when the average American would have been too proud to accept--let alone "beg for"--such largesse.

 

[John in Covina]

The story says it's unclear whether the couple original house was really destroyed. But if they had a house, where was their flood insurance?

***
Insurance is a funny thing, in some places where it is likely to have a certain type of disaster floods fires hurricanes, the abilty to actually purchase insurance may be nil. After Hurricane Andrew, I understand the insurance companies would not sell hurricane insurance in Florida.

I have friends that live by Bakersfield that cannot get Fire Insurance for their home because they live in the "Forest" area.

I live here in Southern California and Earthquake insurance is cost prohibative.

This is where the idea of a quantity break works against you.

 

[Paisley]

As you may know, you can purchase flood insurance from the government at below-market rates.

And if the cost of insurance is prohibitive because the house is in harm's way, doesn't it make sense to buy your house--probably the biggest purchase of your life--in a safer area?

 

[John in Covina]

Home Sweet Home

As you may know, you can purchase flood insurance from the government at below-market rates.

<Really, I didn't think it is offered everywhere. How good is it?>

And if the cost of insurance is prohibitive because the house is in harm's way, doesn't it make sense to buy your house--probably the biggest purchase of your life--in a safer area?

*******

What about if the home you live in is one that was passed down to you? There is a fair number of people for whom the family home contains an extended family and has become the "ancestral" home. Parents and grandparents pass them along to the children and grandchildren and relocation was not an option until the home was destroyed. Buying a home is not easy all the time. The low coastal areas that were damaged due to the storm surge went many miles inland in so many areas. Urban and suburban families don't always want to live so far away from relatives so that travel becomes an issue.

 

[jamespowers]

Gee, Katrina a scam artist's dream? Yep. There are abuses that run from $1,800 per week charges for accomodations on stationary ships to the debit card monies provided being used for everything from designer clothing to lap dances. Its the gift that just kept on giving to the con artists, people taking advantage of the government and the individuals who were unlucky enough to be involved in the disaster. :rage:
There must be a way to better control spending and lessen the willingness to take advantage of such situations. It is obvious these two were part of the grifter crowd.

Regards,

J

 

[John in Covina]

Louisiana & corruption

There are many places in the US that have corruption, political patronage, kickbacks and graft but Louisiana has it all and in scale that most people can't grasp.

I have worked for several companies that tried to get contracts in Louisiana. They became appalled at what passes for common business practices there, and in the end not did not persue these business opportunities. They also made Louisiana off limits. Inquiries were gently rebuffed when they came from Louisiana, it wasn't worth the bother. So many business men and politicians in Louisiana are so crooked, they don't bury them there they simply screw them into the ground.

It is not another state, it is more like another planet.

 

[jamespowers]

There are many places in the US that have corruption, political patronage, kickbacks and graft but Louisiana has it all and in scale that most people can't grasp.

I have worked for several companies that tried to get contracts in Louisiana. They became appalled at what passes for common business practices there, and in the end not did not persue these business opportunities. They also made Louisiana off limits. Inquiries were gently rebuffed when they came from Louisiana.

It is not another state, it is more like another planet.

I can agree with that living here in one of the last bastions of 1930s Bossism. The same trash happens here. The characters are just different. Some day the FBI is going to have a field day at the local City Hall.
You have to kiss the ring of certain people to get things done here or sue. I am waiting for the outcome of one particular case if it actually makes it to court.

Regards,

J

 

[Paisley]

I see what you are saying about an inherited house. In that instance, a person needs to consider how much money they want to sink into a house on a flood plain (or other hazardous area). Since a lot of money is involved, it's a major financial decision. I'd consider renting or selling the inherited house and making a new home elsewhere. If you have inherited, irreplaceable belongings, they'd be safer elsewhere. If you stay in the house, however, you have to open your eyes to the fact that you're taking a risk that you could be wiped out and uninsured. You'd need to have a realistic Plan B in case that happened.

However, I don't think that was the case with many Katrina victims. So many people there seemed to have been caught completely unprepared. ("Completely" as in they ran out of food and medication within a few days.)

Back to the topic, though, the house was a gift and the recipients were free to do whatever they wanted with it: rent it, sell it, live in it, or trash it. The woman who received it said she was married when she got it and unmarried when she sold it. If she got a divorce, it makes sense that they sold the house and divided the proceeds. But if the couple pulled a scam, perhaps the church would have a court case. (There may even be a criminal case.) The church might have to get in a long line to collect any money from them, though.

 

[jamespowers]

(There may even be a criminal case.) The church might have to get in a long line to collect any money from them, though.

Likely a very, very long line.

Regards,

J

 

[Elaina]

I saw the story on Fox News (after reading it here to be exact) and some of the problems that developed was that the couple claimed to be married, have several children and would not let the church go to their house, on the paperwork for house ownership, the lady in question was, in fact, single, and apparently said she had more children then what she did.

I just edited out a long rant. I should take my own adive and quit talking about this. I'll quit complaining one day about it.

 

[jamespowers]

I just edited out a long rant. I should take my own adive and quit talking about this. I'll quit complaining one day about it.

As far as I am concerned, you are paying so you can complain.

Regards,

J

 

[Paisley]

I think it was Ross Perot who said that it's easier to make money than give it away.

 

[jamespowers]

I think it was Ross Perot who said that it's easier to make money than give it away.

In this case he should have said it is easier to steal money than make it. :eusa_doh:

Regards,

J

 

[Mindraker]

MEMPHIS, Tenn. - A church gave a $75,000 house to a couple

his wife had flipped the home for $88,000.

Think in terms of Economics: instead of a $75,000 retail investment being made for New Orleans, $88,000 will now be spent in New Orleans. That's 2524 extra man hours of labor that could be employed at minimum wage. That's not bad.

Now, the house was theirs. Whether it was moral or ethical to "beg" for it or to "appear" in need whether they actually weren't is another story. This is Louisiana, people. (I'm from Louisiana.)

 

[Elaina]

I love Louisana, my feelings aren't toward people from there specifically. A hurricane hit New York, California, or Pluto and I became in debt to my eyeballs and evicted because they landlord wanted to make more money off a Plutonian and I became homeless, fired from my job because they wanted to help and give it to a Plutonian, and then not be able to find a hotel while homeless because they were only letting them to the Plutonian, I'd be a tad bitter to Pluto too. I'm not even going to get into the vast amounts of people that were hit this hard and nothing was available for help because we weren't diaster victims (nor did I ask) but it destroyed far more people in a more hurtful way then just being hit by a hurricane. I'm STILL not recovered from it.

Now, I believe the problem was that someone lied to get something and didn't deserve it. According to the church and Fox News, they wanted to give it to someone to live in it and resettle in Memphis. Not only did this woman alledgely lie about her maritial status, she never did move into the home, and went back to NO shortly after getting the house. So there's gross misrepresentation going on, and the church, IMHO, is rightly peeved off. Yes it was theirs, but if given to them to move into and relocate, does the woman not have an obligation to uphold her end of the agreement legally? You have to live in a HUD home for a while too.

 

[John in Covina]

False pretenses is what makes it wrong.