The Roman Catholic Archdiocese of New Orleans agreed to pay $1 million to settle allegations of false disaster relief claims after Hurricane Katrina hit in 2005.
The settlement resolves allegations that the archdiocese knowingly filed false claims for Federal Emergency Management Agency funding to fix or replace properties damaged from Hurricane Katrina between 2007 and 2013, the Department of Justice announced on Monday. These “included false information to inflate the repair estimate, such as damage to a nonexistent air conditioning system, and false information to deflate the replacement estimate, such as misstated square footage of the building,” according to a DOJ statement.
LOUISIANA JUSTICE SYSTEM FUNDING OVERHAUL CONTINUES; REPLACEMENT FUNDING REMAINS ELUSIVE
Though the archdiocese denied the allegations, the settlement said the parties came to an agreement on a $1 million payment “to avoid the delay, uncertainty, inconvenience, and expense of protracted litigation.”
“FEMA offers critical financial support when natural disasters strike,” said acting Assistant Attorney General Brian Boynton. “The Department of Justice is committed to ensuring that these taxpayer funds are properly spent to help disaster victims rebuild their communities.”
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The lawsuit was filed in 2016 by a whistleblower working with AECOM, an engineering firm assisting with the repairs. It also accused Xavier University of Louisiana and Dillard University of false claims. Xavier University agreed to pay $12 million to the United States, while the case against Dillard University is ongoing.
The Archdiocese of New Orleans declined to comment on the settlement.
