Katrina Fraud Team sets up shop in Mississippi

It’s a pretty fair sign that scammers and opportunists are out of control when the government sets up a special ten man team for two plus years to proactively investigate contractor fraud.

The Sherriff’s in Town

In a report from The Biloxi Sun Herald’s Anita Lee she details the latest plan which is to use a $1.9 million federal grant to fund a Hurricane Katrina Fraud Prevention and Detection Unit with offices in Biloxi and Hattiesburg for the next two years. Details were released by state Auditor Phil Bryant at a news conference Friday.

“The sole purpose of this unit will be to respond to the fraud that will surely occur as billions of dollars of taxpayers’ money will be introduced into the homeowners’ market here on the Gulf Coast,” Bryant said. “From the point where the tax dollars enter the system, until they are paid to the builder, we will be there to assure protection for the citizens.”

Mr. Phil Bryant, the Mississippi State Auditor has a web site where his office publishes some useful tips on how to protect yourself against fraud.

“Fraud watch

Tips for those rebuilding or renovating:

• Remember when talking to a contractor always request identification, address, multiple phone numbers and other ways to contact them. Also note description of the person and their vehicle, including the tag number.

• Always require multiple references and go look at their other work.

• Ask to see the contractor’s licenses.

• Make sure the contractor obtains all permits before the work begins. Deal only with the licensed and insured contractors.

• Always get detailed written estimates from the contractor to avoid surprises.

• Always get guarantees in writing.

Buyer beware if

• The contractor tells you they only accept cash.

• The contractor asks that you pay for all the work up front or asks you for the money to go buy the building supplies.

• The contractor says that they have building materials left over from another job, so your cost will be less.

• The contractor talks fast to confuse you.

• The contractor tries to scare you with a sense of urgency about the work needed.

• The contractor pressures you for an immediate decision.

• The contractor claims to be doing work in the area but does not provide names of references or addresses.

• You can’t find a listing in any phone book for the contractor.

• The contractor asks you to get the required building permits.

• The contractor offers you a discount if you find other customers for them to pursue.

• The contractor offers an unreasonably long guarantee.

• The contractor says that your job will be a demonstration.

• The contractor requires a lien on your property.”

Source: Office of the Mississippi State Auditor