Port Arthur Man Guilty of Hurricane Ike-Related Fraud

BEAUMONT, TX—U.S. Attorney John M. Bales announced that a 62-year-old Port Arthur, Texas man has pleaded guilty to theft of government services in the Eastern District of Texas.

ISSAC MILLS, JR., pleaded guilty to theft of government services today before U.S. District Judge Thad Heartfield.

According to information presented in court, on Oct. 2, 2008, Mills received disaster relief assistance benefits from FEMA totaling $28,800. FEMA records revealed that Mills applied for benefits following Hurricane Ike claiming that he was the owner of property located at 3694 Martin Luther King Drive in Port Arthur, Texas, and that the property was his primary residence. An investigation revealed that Mills was not the owner of the property and that a permit for residential construction has never been issued for this property.

Mills faces up to 10 years in federal prison at sentencing. A sentencing date has not been set.

In September 2005, the U.S. 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 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 is being investigated by the Federal Emergency Management Agency and the U.S. Department of Homeland Security - Office of Inspector General and prosecuted by Assistant U.S. Attorney James Peacock.