5 in Alabama Plead Guilty to Fraud After Oil Spill

October 3, 2011

A woman charged with submitting dozens of bogus claims for a fake catering business in the wake of the Gulf Coast oil spill last year has pleaded guilty.

The Mobile Press-Register reported that 42-year-old Gladys Douglas of Prichard admitted last week that she submitted claims on behalf of Smitty’s Catering that she said employed 45 people. Authorities say she made $3,800 off of the scheme.

Authorities also charged four people that investigators say Douglas helped file fake claims with the Gulf Coast Claims Facility. All four have pleaded guilty in the case.

Authorities say in all, the defendants in the case defrauded the government out of nearly $65,000.

A listed phone number could not be found for Douglas.

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