United States Attorney John L. Ratcliffe
Eastern District of Texas
FOR IMMEDIATE RELEASE CONTACT: DAVILYN WALSTON
MONDAY, NOVEMBER 19, 2007 PUBLIC INFORMATION OFFICER
WWW.USDOJ.GOV/USAO/txe/ PHONE: (409) 839-2538 CELL: (409) 553-9881
INMATE SENTENCED FOR HURRICANE RELATED FRAUD
Port Arthur Man in Prison when Hurricane Hit
BEAUMONT TX – United States Attorney John L. Ratcliffe announced that a 29-year-old Port Arthur man has been sentenced to nine months in federal prison for hurricane related fraud in the Eastern District of Texas.
RORY ILES, JR., pleaded guilty on June 28, 2007 to charges of mail fraud and making a materially false statement to FEMA in connection with applications he filed for federal disaster relief. Iles was indicted by a federal grand jury on May 2, 2007. Iles was also ordered by United States District Judge Ron Clark to pay a $1000 fine and $2,000 in restitution.
According to prosecutors, Iles claimed he was displaced from his primary residence in Port Arthur due to damage to the home as a result of Hurricane Rita. In fact, Iles was incarcerated with the Texas Department of Criminal Justice at that time and not released until October 6, 2005. The home in question was not owned by Iles.
In September 2005, the Department of Justice created the 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 Alice S. Fisher of the Criminal Division – includes members of the FBI, the Federal Trade Commission, the U.S. Postal Inspection Service, and the Executive Office for United States Attorneys, among others.
This case was investigated by the Department of Homeland Security Office of Inspector General and prosecuted by Assistant United States Attorney Robert Hobbs.
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