Katrina Woes Multiply for Red Cross, Police

0ct. 30, 2005 — -- As the Gulf Coast region struggles to deal with the aftermath of Hurricane Katrina, the Red Cross and the New Orleans Police Department are grappling with alleged theft and desertion.

The American Red Cross -- responsible for bringing aid to Katrina victims -- now finds itself in need of relief after it was allegedly swindled out of at least $100,000. Some of the 30 alleged thieves were Red Cross volunteers at the Katrina relief call center.

The Red Cross issued a statement saying it has "a zero-tolerance policy" for fraud and that it is working with authorities to "vigorously purse all such cases."

"It's doesn't surprise me at all that criminals will try to steal from charities in a disaster situation," said Daniel Borochoff, president of the American Institute of Philanthropy. "It's chaotic."

As if being robbed isn't enough, the Red Cross has faced other financial woes this year. For the first time in its 124-year history, the group has been forced to borrow money for disaster relief.

According to its published reports, the Red Cross has already spent $1.3 billion of $2 billion in cash donated by the public. But some people who donated claimed that their checks have yet to be cashed.

"They are overwhelmed with so many credit cards and checks," Borochoff said. "That slows it down."

At the same time, 51 police officers from the 1,600-person New Orleans Police Department have been fired for abandoning their posts during the hurricane's destruction.

Those police must deal with the wrath of their former colleagues.

"They violated that oath," said Lt. David Benelli, president of the New Orleans Police Union. "They let their brothers down. I have no sympathy for those people."

The New Orleans Police Department may face more fallout: Two hundred twenty-eight other officers are under investigation for failing to report to duty during the Katrina crisis.