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Red Cross under fire over Katrina funds

WASHINGTON, March 31 (UPI) -- The head of the American Red Cross said he has turned over an investigation of alleged misuse of Hurricane Katrina funds to the FBI.

Interim Chief Executive Jack McGuire said three New Orleans volunteers were dismissed from the organization last week after the Red Cross ended its own investigation.

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The Washington Post reports two former volunteers who already documented fraud and abuse said they reported their findings to the Red Cross but got no response.

"I have not heard one word," said Baltimore lawyer Jerome Nickerson.

He and Wisconsin security guard Michael Wolters said they have turned over their report to the FBI as well.

They say multiple warehouses in New Orleans were being used to sell off donated goods, among other claims.

Congress is reviewing the Red Cross' charter and investigating how it spent the $2.1 billion in donations for relief from hurricanes Katrina, Rita and Wilma.

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