A Montana contractor has been indicted for defrauding federal disaster relief programs following the catastrophic 2022 flooding that devastated Yellowstone National Park and nearby counties. According to the U.S. Attorney’s Office for the District of Montana and the Department of Homeland Security Office of Inspector General (DHS-OIG), the defendant orchestrated a complex billing scheme that diverted more than $1.2 million in Federal Emergency Management Agency (FEMA) funds intended to rebuild washed-out infrastructure and assist displaced residents.
Investigators allege the contractor submitted falsified invoices, duplicate project documentation, and fabricated photographs of nonexistent repairs. The scheme involved billing multiple counties for identical heavy equipment rentals, diesel costs, and debris removal work—most of which was never performed. Some property owners later told auditors they had never authorized any work or even heard of the contractor.
The fraud came to light when state procurement officials noticed several reimbursement packets contained the same invoice templates and time stamps across different jurisdictions. A joint task force including the DHS-OIG, FBI, and the Montana Division of Criminal Investigation traced funds to personal bank accounts used for luxury vehicle purchases and home improvements.
“This wasn’t just about greed—it was about exploiting a natural disaster for personal gain,” said U.S. Attorney Jesse Laslovich. “Fraud like this diverts vital resources from communities struggling to recover.”
The investigation has prompted FEMA and state agencies to tighten post-disaster oversight by expanding cross-agency data sharing and implementing digital verification of vendor documentation. Officials say the case underscores the value of real-time data analytics and digital identity validation in detecting duplicate or falsified claims before taxpayer funds are released.
Today’s Fraud of the Day is based on reporting from the U.S. Department of Justice and the Billings Gazette regarding disaster relief fraud in 2025.
