Katrina Fraud Case Brings Guilty Verdicts

July 31, 2009

JACKSON- State Auditor Stacey Pickering announced today that Jerome and Catherine Foreman were convicted of making false statements, false claims, theft and mail fraud following a 4-day trial that ended in federal court on Thursday, July 30.

The State Auditor’s Katrina Fraud Prevention and Detection Unit, working with the Department of Housing and Urban Development and Office of the Inspector General, investigated the Foreman’s case which was prosecuted by the United States Attorney’s Office.

On June 11, 2008, the Grand Jury indicted Jerome and Catherine Foreman for fraud related to Hurricane Katrina disaster assistance, including their application for the Mississippi Development Authority homeowner’s grant. Their Mississippi residence claimed was not a primary residence, a requirement of the grant program. Jerome Foreman was found guilty on six counts of the indictment and Catherine Foreman was found guilty of one count.

“This is an excellent example of the ability of our investigators to put together cases that result in guilty pleas or guilty verdicts,” said State Auditor Stacey Pickering. Our Katrina Task Force has an excellent track record. We have over 300 active fraud investigations in our Katrina unit, and we continue to work diligently to bring those cases to a close.”

Since its inception, the Office of the State Auditor’s Katrina Fraud Prevention and Detection Unit has prosecuted to completion 20 cases, many with multiple defendants, which have resulted in 3 guilty verdicts and 17 guilty pleas.

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