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N.Y. terror recovery spending questioned

NEW YORK, Dec. 6 (UPI) -- New York Mayor Michael Bloomberg is calling for an investigation of reported fraud in spending billions to recover from the Sept. 11, 2001 terror attacks.

"Only time will tell" how much waste and fraud there was in the recovery aid program," Bloomberg said Monday. "The public deserves an accounting of how their monies were spent."

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U.S. Rep. Pete King, R-New York, said the House Homeland Security Committee would hold hearings, likely in February, on $21.4 billion spent in New York recovery aid.

"I can't tell you how outraged I am that a person could profit so much as $1 on Sept. 11," King told the New York Daily News, which reported large amounts went to companies not affected by the terror attacks, including mobsters.

Separately, Sen. Hillary Rodham Clinton, D-New York, slammed the Small Business Administration for "mishandling" terror-recovery loans that sent $20 million to Dunkin' Donuts shops around the country, the New York Post reported.

The SBA and a Senate committee were investigating the loans.

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