Press Releases
THREE MISSISSIPPIANS ARRESTED FOR MDA HOMEOWNER GRANT
FRAUD IN THE WAKE OF HURRICANE KATRINA
THURSDAY, APRIL 19, 2007
FOR IMMEDIATE RELEASE
GULFPORT, Miss. – Disera F. Desselles, Joseph Pugh, and Debbie Pugh were arraigned on Wednesday, April 18, in U.S. District Court in Gulfport pursuant to indictments returned by a federal grand jury alleging false claims to FEMA, the Mississippi Development Authority, the Small Business Administration, and the Department of Agriculture for Hurricane Katrina disaster assistance funds, U.S. Attorney Dunn Lampton announced today.
Disera F. Desselles was charged in a nine count indictment with filing a false claim for disaster assistance, making false statements to FEMA and the Mississippi Development Authority, theft of government funds, mail fraud and wire fraud. If convicted, Desselles faces up to 125 years imprisonment and up to $6,000,000.00 in fines.
Joseph Pugh and Debbie Pugh, of Diamondhead, Mississippi, were charged in a twelve count indictment with filing a false claim with FEMA, making false statements to the Mississippi Development Authority and the Small Business Administration, making false statements to the U.S. Department of Agriculture (through the Mississippi Department of Human Services) for disaster food stamps, theft of government funds, mail fraud, and wire fraud. If convicted, Joseph Pugh faces up to 90 years imprisonment and $1,750,000.00 in fines, and Debbie Pugh faces up to 15 years imprisonment and $510,000.00 in fines.
In September, 2005, Attorney General Alberto R. Gonzales created the national Hurricane Katrina Fraud Task Force, designed to deter, investigate and prosecute disaster-related federal crimes such as charity fraud, identity theft, procurement fraud and insurance fraud. The Hurricane Katrina Fraud Task Force - chaired by Assistant Attorney General for the Criminal Division, Alice S. Fisher, includes members from the FBI, the Federal Trade Commission, the Department of Labor Office of Inspector General, the Postal Inspector’s Office and the Executive Office of United States Attorneys, among others.
Pursuant to the Justice Department initiative, a local Katrina Fraud Task Force, consisting of over 20 Federal and State law enforcement agencies, was formed in the Southern District of
Mississippi to pursue and prosecute individuals who engage in fraud associated with the hurricanes.
If anyone has information concerning possible fraud being committed during the post-Katrina recovery effort, please call either the DHS-OIG Fraud Hotline at 1-866-720-5721 or the FBI Fraud Hotline at 1-800-225-5324
