This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Amid Newtown Tragedy, Scam Artists Creep In

"As was learned after the tragic events of 9/11/01, the tsunami disaster, and more recently with Hurricane Katrina, unscrupulous cyber criminals have shown the desire and means to exploit human emotion by attempting to defraud the public when they are perceived to be most vulnerable," the FBI said at the time.

This fall, the police in Aurora, Colo., accused a local woman of trying to profit off the deadly movie theater rampage by a gunman who killed 12 people. The woman told people that she was the caretaker for a little girl named Kadence, whose mother had died in the shooting. The police said the child was made up. The scam unraveled when a donor got a phone call from what seemed to be a woman imitating a child's voice.

When the government doled out disaster aid after Hurricane Katrina, scammers asked for money to rebuild houses they never lived in or to pay benefits for relatives who never existed.

The government later set up the National Center for Disaster Fraud to try to root out such scams in the federal relief programs administered after Hurricanes Katrina, Rita and Wilma. It has since expanded its mandate to other disasters.

The cases brought since then by the Justice Department sketch a colorful picture of fraud:

â¿¿ A woman who filed for small-business disaster benefits after the 2010 Gulf Coast oil spill, even though she'd sold the business before the accident.

â¿¿ A judge and a commissioner in Texas who, after Hurricane Ike, were accused of awarding debris removal contracts to a company in return for kickbacks. The judge also commandeered a 155-kilowatt generator meant for the county to power his convenience store, according to the government.

â¿¿ A pastor who submitted inflated claims to a government-funded program that reimbursed groups sheltering Hurricane Katrina evacuees.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,485.69 -15.96 -0.10%
S&P 500 1,877.33 +1.94 0.10%
NASDAQ 4,142.3760 +15.4090 0.37%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs