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Some Evacuees Spend Relief Money At Strip Clubs

HPD Sets Up Task Force To Find Debit Card Scammers

POSTED: Thursday, September 15, 2005

On the same day that the Houston Police Department announced the formation of a task force to find people abusing or scamming the FEMA and Red Cross debit cards, KPRC Local 2 discovered that some of the money has been spent at local strip clubs.

The cards were given to evacuees from Hurricane Katrina to help them relocate and start their lives anew after losing everything they own. There are no rules on how the money should be spent, but most spend it on the necessities -- food, clothing and shelter.

A manager at Caligula XXI Gentlemen's Club on Westheimer Road told KPRC Local 2 that he has seen at least one debit card used at his club.

A woman known only as "Abby" is a bartender at Baby Dolls, another adult entertainment club across the street.

"A lot of customers have been coming in from Louisiana and they've been real happy about the $1.75 beers and they're really nice," she said.

Abby could not say for sure which type of card her patrons have been using, but said she doesn't blame them for using federal dollars.

"You lost your whole house, then, why not? You might want some beer in a strip club. There are a lot of guys out there that like to do that," she said.

The wife of the manager of another strip club told KPRC that her husband has seen patrons from Louisiana offering Red Cross and FEMA debit cards, but she declined to reveal the club's name.

Other strip clubs contacted by KPRC Local 2 would not confirm or deny that they are seeing the debit cards used by customers.

The FEMA and Red Cross cards have few restrictions, but some evacuees have gotten into trouble when they tried to get additional cards.

Police are going undercover as evacuees to keep their eyes on those who get in line more than once.

"There may be some individuals who use some false identifications or providing false information on the forms, so we're targeting those persons also," said Lt. Robert Manzo, with the Houston Police Department.

Officers handed out a warning that falsifying government documents could result in a 20-year prison sentence.

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