Fraud and Corruption in Times of Disaster
An examination of the response to major natural and man-made catastrophic events in the past reveals numerous examples of heroic deeds during and after the disaster, as well as many example of peoples from all walks of life providing assistance to the vic
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troduction If one studies carefully the reaction of people during and after man-made and natural catastrophic events such as floods, tornadoes, hurricanes, fires, oil spills, terrorist attacks, and wars, it is remarkable to see the great contrasts in human behavior. One witnesses the heroic actions, particularly from the first responders, those who give aid in the form of money or personal services, and also the minority who use the event as a way to enhance their own finances through fraud, scams, and corruption, often further victimizing those whose lives were already devastated. Looking at fraud and corruption in a historical view, many examples of corruption and fraud were recorded during wars. Various scams were directed toward Union soldiers returning to their homes after the end of the US Civil War. For example, Jordon (2016, p. 28) notes, “Rascals and quick charlatans began offering ex- soldiers up to $300 in exchange for army discharge papers, with which they could pretend to be Union veterans and petition for government employment, bounty equalization, disability pensions, or homestead lands.” Drastic changes in a government generally result in an increase in fraud and corruption. Plywaczewski (2000), Kratcoski (2000), and Edelbacher (2012) note that during and after the breakup of the Soviet Union, the “black market” was extensive, often organized by former Soviet government officials. The Vietnam War provided ample opportunities for corruption and fraud, the perpetrators often being military leaders, government officials, private businesses, and individuals who were in positions to engage in such deviant behavior. The recent hurricanes, floods, tornadoes, and terrorist acts that occurred in the United States resulted in numerous instances of heroic deeds, self-sacrifice, and assistance to the victims of the catastrophic events. However, numerous cases of P. C. Kratcoski (*) Department of Sociology and Justice Studies, Kent State University, Kent, OH, USA e-mail: [email protected] © Springer International Publishing AG, part of Springer Nature 2018 P. C. Kratcoski, M. Edelbacher (eds.), Fraud and Corruption, https://doi.org/10.1007/978-3-319-92333-8_8
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fraud and corruption on a grand scale were also uncovered during and after such events. For example, a Federal Bureau of Investigation report (2011) documented billions of dollars bilked from the government by fraudsters after Hurricane Katrina devastated a good portion of New Orleans and other parts of Louisiana in 2005. The example given in Box 1 illustrates some of the best in terms of response to disasters. Box 1 Examples of a Caring Society (Akron Beacon Journal 10/22/2017 A 1, A14) Five past presidents attend concert to raise money for the victims of Hurricane Harvey, Irma, and Maria. “Hurricane Harvey slammed into the Texas Gulf Coast as a category 4 hurricane on Aug.25, eventually unleashing historic flooding in Houston and killing more than 80 people….” “Hurricane Irma subsequently hit Florida and Hurricane Maria battere
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