National Red Cross Battling Scammers

After 49 people were indicted in a scheme that bilked hundreds of thousands of dollars from a national Red Cross fund designated for Hurricane Katrina survivors, the local chapter is not worried about declining donations - yet.

Martha Griese, chief executive office of the Three Rivers Chapter in Yuba City, said Wednesday that donors might be angered by the discovery, but she hopes they will not stop giving to the cause.

“That's horrendous. It's going to make people leery of making donations, for sure,” she said. “It makes me mad, and that's what it's going to do to the donors and volunteers - make them mad.”

At least 14 suspects worked at a Red Cross call center in Bakersfield and are accused of helping family and friends file false claims for aid money. Six have pleaded guilty to federal wire fraud charges.

The fake claims netted at least $200,000 from the fund, with an average payout of about $1,000, Red Cross spokeswoman Devorah Goldburg said. The total could grow as the investigation continues.

Griese said that despite a background check on all volunteers, a “few bad apples” may pop up in an effort as large as the outpouring for Katrina victims.

“Just because you do a background check, unfortunately it's not ever going to show if someone is going to be dishonest,” she explained. “I think it's also important for the community to know, that when Katrina hit, it was the largest disaster this nation has ever faced, and we needed thousands upon thousands of people to help.”

Griese said because of the urgent need for volunteers, most were accepted on the belief that they just wanted to help, with minimal background checks. The local chapter did a “Megan's Law” background check and left it at that, Griese said.

“I know my attitude is the same as Red Cross; anyone who walks in here and says, ‘I want to do something to help,' I believe they're speaking from their heart,” she said. “If someone walks in and says, ‘I need help,' I also believe they're speaking from their heart. We are neutral - it's one of our guiding principals, whether you're a victim or a volunteer.”

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

The Red Cross contacted the FBI after it performed an audit of the call center and discovered an unusually high number of claims were being paid out at Western Union outlets in the Bakersfield area.

None of the indicted employees worked directly for the Red Cross.

The indicted workers were providing PINs to their friends and family who would then go to Western Union to collect the funds, an official said.

“Red Cross will stand behind this mistake, and if they need to own it, they'll own it,” Griese said. “And not only will they own it, but they will take the steps they need to take to do all they can to make sure it doesn't happen again.”

Since the organization began collecting donations for Katrina survivors, local dollars have totaled “well over the $400,000 mark,” Griese said. When she looked at records of businesses and individuals donating $1,000 and above, Sutter County had the highest number of donors, followed closely by Butte and Yuba counties.

“I'm really hoping this won't deter the generosity of this community,” Griese said.

The Associated Press contributed to this report.