The FBI arrested two Federal Emergency Management Agency employees
Friday after each accepted $10,000 in cash kickbacks from a food
services contractor, the U.S. Attorney said.
The contractor, who
was not immediately identified, notified the government of attempts to
bribe him soon after he arrived at a FEMA camp in the Algiers
neighborhood of New Orleans.
U.S. Attorney Jim Letten said the
suspects _ identified as Andrew Rose and Loyd Hollman, both of Colorado
_ took the contractor into a locked room to discuss how they could
artificially inflate the head count of FEMA workers taking meals at the
camp, which would increase the contractor’s revenue. They allegedly
told the contractor they would need $20,000 in kickbacks to inflate the
Federal agents used electronic surveillance and have Rose and Hollman on tape talking about the alleged scheme, Letten said.
and Rose each were charged with soliciting bribes as public officials.
Both were in custody Friday afternoon and Letten said prosecutors would
argue that they should be held without bail as flight risks.
said the arrests should serve as a warning that a federal task force
set up in Louisiana last fall is quickly responding to information
about possible fraud by contractors and public officials.