William J. Edwards, United States Attorney for the Northern District of Ohio, today announced the indictment of 12 Toledo residents for conspiring to steal or aiding and abetting in stealing approximately $92,000 from the Federal Emergency Management Agency (“FEMA”) for emergency assistance to victims of Hurricane Katrina and Hurricane Rita from September 2005 through January 2006.

Eleven defendants, residing in Toledo, Ohio, are charged in a single indictment with conspiring to steal FEMA funds totaling approximately $90,000 in the form of at least 26 checks FEMA issued for emergency assistance for Hurricane Katrina and Hurricane Rita. These defendants are:

Reginald McFarland, age 50
Roger McFarland, age 74, father of Reginald McFarland
Frances Huntley, age 70, step-mother of Reginald McFarland
Tina Frieson, age 49, girlfriend of Reginald McFarland
Jerome King, Jr., age 53, cousin of Reginald McFarland
Lois Lipkins, age 72, aunt of Reginald McFarland
Lori J. Bibbs, age 38
Henrietta Mack, age 58
Sirena L. Campbell, age 38
Jamica D.G. Chenault, age 32
Kenyatta D. King, age 31

This indictment alleges that some coconspirators contacted the FEMA hotline for Hurricane Katrina or Hurricane Rita and falsely informed FEMA the hurricanes had displaced them from their homes in the affected areas. The indictment further states on at least ten separate occasions these callers gave FEMA the Toledo residential address and/or telephone number of defendants Reginald McFarland and Roger McFarland and that FEMA mailed at least 10 emergency assistance checks to that address.
The indictment further alleges that defendant Reginald McFarland and coconspirators acting on his behalf paid other coconspirators between $300 and $500 to negotiate the fraudulently obtained FEMA checks at Toledo banks or convenience stores and to return the check proceeds to defendant Reginald McFarland. The indictment further alleges that defendant Roger McFarland negotiated three FEMA checks totaling $6,000 payable to three different individuals, defendant Frances Huntley negotiated 13 FEMA checks totaling $27,074 payable to 13 different individuals, defendant Tina Frieson negotiated three FEMA checks totaling $6,358 payable to three different individuals, and seven other coconspirators negotiated one FEMA check for either $2,358 or $2,000.

One defendant, Booker T. Grace, Jr, age 44, is charged in a separate indictment with aiding and abetting the stealing of $2,000 in FEMA funds for Hurricane Rita emergency assistance.

On August 29, 2005, Hurricane Katrina struck New Orleans, Louisiana, and the surrounding area. On September 24, 2005, Hurricane Rita struck areas in Louisiana and Texas. FEMA provided aid to the victims of Hurricane Katrina and Hurricane Rita, including payments for immediate emergency assistance, rental assistance, and lost or damaged property replacement assistance. To expedite providing financial assistance to victims, FEMA set up toll-free hotline telephone systems. Victims could call the toll-free hotlines, provide certain personal information, including their address in the affected areas, and receive financial assistance in one or more of the categories identified above.

If convicted, each defendant’s sentence will be determined by the Court after review of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

The investigating agencies in these cases are the United States Secret Service, the United States Postal Inspection Service, and the Office of Inspector General, Department of Homeland Security. The cases are being handled by Assistant United States Attorney Seth D. Uram, who may be reached at the above telephone number.

An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.