Mississippi Litigation Review & Commentary : Mississippi Personal Injury Lawyer & Attorney : Phillip W. Thomas Law Firm : MS Litigation Review & Commentary

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Last Friday former Gulfport mayor Brent Warr pleaded guilty to one count of making a fraudulent claim after Hurricane Katrina. Here is the Sun-Herald article on the plea. But the guilty plea looks like a good deal for Warr:

Under the plea agreement, prosecutors dropped 19 other charges against Brent Warr and all 20 against his wife, Laura. Brent Warr was sentenced to three years probation and was ordered to pay $9,558 in restitution.

So no jail time for Warr and the government drops 39 of 40 charges against Warr and his wife. This was obviously a great deal for the Warrs--a huge win. The Warrs should be very happy with the job that their attorney, Joe Sam Owen of Gulfport, did in negotiating this deal.

When the government indicted the Warrs last spring I criticized it in this post. At the time, I had determined that the public on the Coast sympathized with the Warrs and felt like the government basically entrapped them by encouraging home owners to make claims even if they weren't sure they were eligible. For the government to basically let the Warrs take a walk, it looks like they had second thoughts about the wisdom of the prosecution and the chances for a win before a jury that would have been sympathetic to the Warrs.

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The indictment of Gulfport mayor Brent Warr and his wife, Laura, brings widespread attention to questionable criminal prosecutions of Gulf Coast homeowners for allegedly making fraudulent claims for government benefits to repair homes destroyed by Hurricane Katrina. The government alleges that the Warrs' claim was fraudulent because it was not made on their primary residence. The Warrs bought the house in 2004, renovated it, and were in the process of moving in when Katrina hit in 2005.

As reported in the February 8, 2009 edition of the Sun Herald, the outcome could be decided by a determination of which home was the Warrs' "primary residence." The problem with having a criminal case decided on this question is that, according to the Sun Herald, there is no accepted definition of "primary residence." For instance: 

Court testimony in a previous case indicates neither MDA nor FEMA regulations define what constitutes a “primary residence.”

Gerald Bordelon, a special agent who investigates Katrina fraud for the State Auditor’s Office, testified in another federal court case about homeowner-grant qualifications.

Bordelon said “primary residence” was a “fluid” term. He added, “It is based on a totality of the circumstances.”

The Warrs have the highest profile of many Coast residents subject to federal prosecution based on the justice department's questionable interpretation of a fluid term with no set definition. Making matters worse, some people now claim that FEMA and other government agencies encouraged Coast residents to apply for benefits if there was any doubt as to whether they were eligible. DOJ is now taking the opposite approach, however, and prosecuting all close cases. 

Attorney General Holder and the Justice Department leadership under President Obama should re-evaluate all homeowner Katrina-fraud cases. In cases such as the Warrs where the question is close, all charges should be dismissed. The department should also concentrate its investigations on fraud claims involving government contractors who fraudulently bilked millions, if not billions, from the government.  Doesn't that make more sense than going after homeowners whose lives were destroyed by Katrina?