Woman Pleads Guilty To Theft of Road Home Money
| U.S. Attorney’s Office December 21, 2011 |
NEW ORLEANS, LA—RACHEL SAVAGE, age 48, a resident of Foley, Alabama, pleaded guilty to a one-count bill of information today for theft of government funds, based on her fraudulent receipt of over $100,000 from the Louisiana Road Home program, announced U.S. Attorney Jim Letten.
According to the court documents, on or about December 8, 2001, SAVAGE’s residence in Slidell, Louisiana, was completely destroyed by fire. The home was not rebuilt prior to Hurricane Katrina making landfall in August 2005. However, following Hurricane Katrina, SAVAGE applied for and was awarded money from the Louisiana Road Home program totaling $104,935.00 after she made affirmative representations in her application that she had lived at the destroyed residence at the time of Hurricane Katrina and that it had been destroyed as a result of Hurricane Katrina.
SAVAGE faces not more than 10 years in prison and/or a $250,000 fine. SAVAGE will also be responsible for restitution to the government in the amount of $104,935.00. Upon release from any term of imprisonment, she is subject to up three years’ supervised release. Sentencing is scheduled for March 28, 2012.
The case was investigated by the United States Department of Housing and Urban Development–OIG with assistance from the Federal Bureau of Investigation. The case was prosecuted by Emily Greenfield.