FEMA Seeks to Recoup $309 Million in Katrina Recovery Aid

    The Federal Emergency Management Administration has determined nearly 70,000 households improperly received $309.1 million in grants, and officials acknowledge those numbers are likely to rise.

    The Justice Department so far has prosecuted more than 400 people for storm-related fraud, and $18 million has been returned to FEMA or the American Red Cross, according to a recent report by the department's Katrina Fraud Task Force.