Arrests made as Red Cross halts Katrina scam

FORTY-NINE people have been indicted in a scheme that bilked thousands of dollars from a Red Cross fund designated for Hurricane Katrina victims, federal authorities said.

At least 14 suspects worked at a Red Cross call centre in Bakersfield and are accused of helping family and friends file false claims for aid money, said Mary Wenger, a spokeswoman for US Attorney McGregor Scott in Sacramento. Six have pleaded guilty to federal wire fraud charges, she said.

The fake claims drained at least $200,000 (€169,000) from the fund, with an average pay-out of about $1,000, Red Cross spokeswoman Devorah Goldburg said. The total could rise as the investigation continues.