You're assuming that the fraudulent applications came from New Orleans residents. There was fraud in the 9/11 assistance - people from as far away as Las Vegas were getting aid for attacks that occurred in New York, Virginia and Pennsylvania.
I can't say I'm surprised about this. And I also know that if FEMA tried to do anything to stop duplicate payments in the aftermath of the storm, FEMA and President Bush would have been vilified. This is one of those situations where it would have been Bush's fault no matter what, according to the MSM and Democrats.
OH that aint the half of it. With so many people showing up in mass numbers esp in arkansas and texas with no ID. I am sure alot of out state of Louisiana people took advantage of it. That was a problem in Dallas a week after the storm I kept hearing.
One thing for every conservative to notice about this story - the audit is being done within 5 months of the disaster - not two years later. It is possible to track down people with that type of audit. Another example of how this administration is doing a better job with money than people think.