Woman Pleads Guilty In Katrina Fraud Investigation

United States Attorney Laura E. Duffy announced that Cynthia D. Magee entered guilty pleas to two counts of an indictment charging her with fraudulently obtaining more than $20,000 in disaster relief following Hurricane Katrina. Magee entered her guilty plea before Magistrate Judge Nita L. Stormes, subject to final acceptance of the plea by U.S. District Judge Larry A. Burns. Magee was previously charged in a sixcount indictment with making false statements to the Federal Emergency Management Administration (FEMA) and defrauding the American Red Cross in the aftermath of Hurricane Katrina.

In pleading guilty, Magee admitted that shortly after Hurricane Katrina made landfall on August 29, 2005, she submitted a claim for disaster relief to FEMA, in which she falsely stated that her primary residence was located in New Orleans, Louisiana and subsequently improperly received more than $14,000 in FEMA benefits. Magee further admitted that she traveled throughout the Gulf Coast region collecting American Red Cross disaster-relief debit cards by falsely claiming to reside in Louisiana and Mississippi and receiving more than $5,000 in disaster assistance funds.

The investigation leading to the charges was conducted by agents with the Federal Bureau of Investigation and the United States Postal Inspection Service.

This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes, and the recent Gulf Oil Spill.

If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by calling the hotline at (866) 720-5721. You can also fax information to (225) 334-4707 or e-mail it to disaster@leo.gov.

A sentencing hearing is scheduled for January 10, 2011 at 9:30 a.m., before Judge Burns.

Case Number: 10cr3466-LAB
DEFENDANT
Cynthia D. Magee Age: 43 San Diego, CA
aka Cynthia Magee Turner, Cynthia D. Turner, Cynthia Turner

SUMMARY OF CHARGES
Count 1: Title 18, United States Code, Section 1001 (False Statement)
The maximum penalty for a violation Title 18, United States Code, Section 1001 is 5 years in prison, a fine of not more than $250,000 and a term of supervised release of not more than three years.
Count 4: Title 18, United States Code, Section 1343 (Wire Fraud)
The maximum penalty for a violation Title 18, United States Code, Section 1343 is 20 years in prison, a fine of not more than $250,000 and a term of supervised release of not more than three years.

AGENCIES
Federal Bureau of Investigation
United States Postal Inspection Service