Slidell man charged with Katrina-related fraud

By Erik Sanzenbach
St. Tammany News
Published on Sunday, August 29, 2010 12:22 AM CDT

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A Slidell man was one of 22 people indicted by a federal grand jury Thursday on wire fraud charges relating to fraud schemes related to Hurricane Katrina.

Keith Watson, 55, of Slidell was charged with one count of wire fraud. According to U.S. Attorney Jim Letten, Watson went to nine different American Red Cross aid stations after Katrina in September and October 2005 and received by fraud $12,520.

After the storm, Red Cross stations were set up across the area hand out aid to storm victims. People could apply for up to $1,100 given to them in debit cards.

However, they could only apply for this money once. Watson allegedly went to each Red Cross station and lied, telling Red Cross workers that this was the first time he was applying for the money.

Other people indicted along with Watson were from Hammond, New Orleans, Marrero, Ponchatoula, Gibson and Houston Texas.

The dollar amounts of the various fraud cases ranged from $2,000 to $495,000. The American Red Cross, SBA and the Road Home Program were all victims of the various schemes.

Letten said these indictments come on the fifth anniversary of Hurricane Katrina to show that there are people who will take advantage of disasters to steal and cheat.

“No amount of fraud —however small or large — will be tolerated as we defend the public trust,” Letten said.

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