Federal court: Three guilty of FEMA fraud

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[##_1L|1145869747.jpg|width="101" height="102" alt=""|_##]Three people have been sentenced in federal court in Biloxi on charges of illegally receiving disaster payments from the Federal Emergency Management Agency for debris cleanup after Hurricane Katrina. Clinton K. Miller of Carrier and Lauren Robertson of Picayune, who both worked for a debris monitoring company, were sentenced to 33 months and 13 months, respectively. Each was ordered to pay $275,057 in restitution.
 
Allan Kitto of Dundee, Fla., owner and operator of J.A.K. DC&ER Inc., worked under a subcontract as a debris hauler. He was sentenced to 25 months in jail and a $275,057 fine.

The three pleaded guilty in February to conspiracy involving submission of $716,677 in false debris hauling tickets.

Kitto submitted the tickets, while Robertson signed them, in most instances at her home, according to the U.S. Attorney's Office. Miller collected and submitted the slips for reimbursement.

Prosecutors said Kitto admitted he tried to conceal the conspiracy by depositing the money in a bank account opened under an employee's name.

Miller paid Robertson for signing the slip and also offered her extra "hush money," prosecutors said.

Meanwhile, W.C. Blackmon of Canton pleaded guilty Friday in federal court in Jackson to filing a false FEMA claim for Katrina disaster assistance funds.

U.S. Attorney Dunn Lampton said FEMA mailed $14,470 to an address in Biloxi, based on a false statement from Blackmon claiming hurricane damage to items there.

Blackmon will be sentenced July 27. He faces a maximum five years in prison and a $250,000 fine.

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