49 accused of defrauding Red Cross of hurricane funds

The number of people indicted in a scheme that defrauded the Red Cross of thousands of pounds designated for Hurricane Katrina victims has risen to 49, federal authorities in California said.

At least 14 suspects worked at a Red Cross call centre in Bakersfield, California, 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 since the first indictments were announced in October, she said Tuesday.

The fake claims drained at least £100,000 (€145,102) from the fund, with an average payout of about £500 (€725), Red Cross spokeswoman Devorah Goldburg said.

The total could rise as the investigation continues, she said.

The Bakersfield site is the largest of three Red Cross centres set up to handle hurricane calls. Others are in Niagara Falls, New York, and Falls Church, Virginia. Operators provided qualifying victims with a personal identification number they then presented to receive aid funds from Western Union, authorities said.