WNPR

Laura Sullivan

A new report by the New York attorney general's office finds that a lack of accountability in the nation's flood insurance program is costing taxpayers millions. The office also announced 50 felony charges against an engineering firm for allegedly writing fraudulent reports in the aftermath of Superstorm Sandy.

The American Red Cross spent a quarter of the money people donated after the 2010 Haiti earthquake — or almost $125 million — on its own internal expenses, far more than the charity previously had disclosed, according to a report released Thursday by Iowa Sen. Chuck Grassley.

The report also says the charity's top officials stonewalled congressional investigators and released incomplete information about its Haiti program to the public. It concludes "there are substantial and fundamental concerns about [the Red Cross] as an organization."

This story is Part 1 of a two-part series. See our second piece about local recovery programs that are struggling to help homeowners here.

On a cold rainy day last fall, dozens of people gathered in a plaza across the street from New Jersey's state Capitol. They held press conferences and slept overnight in lawn chairs.

Sen. Chuck Grassley is asking federal investigators to give him the names of officials at the American Red Cross who did not cooperate with the government's recent inquiry into the charity.

The American Red Cross is facing new criticism today as government investigators and a congressman call for independent oversight over the long-venerated charity.

Federal legislation is being unveiled that would force the Red Cross to open its books and operations to outside scrutiny — something it has repeatedly resisted.

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