Phoenix-Hurricane Katrina will generate insurance "fraud on ascale never before imagined," an attorney who specializes incombating such catastrophe-linked activity told investigatorsmeeting here.

Guy E. Burnette of Tallahassee, Fla., made his prediction at asession today of the annual seminar and expo of the InternationalAssociation of Special Investigative Units.

Mr. Burnette noted that based on past documented activity fromprevious natural disasters, about 11 percent of claims have provento be fraudulent.

Using this percentage, he said, the four hurricanes to hitFlorida last year will result in 286,000 fraudulent claims worth$1.4 billion.

Catastrophes, he advised, bring out "the best and the worst inpeople," and with the federal government earmarking $52 billion forKatrina relief, "opportunistic individuals" will be scheming to geta slice of the pie.

He cited the case of a Homestead, Fla., woman who collected$24,755 from the Federal Emergency Management Agency, claimingHurricane Frances damaged her home with backed up sewage, omittingthe fact that the backup occurred 20 weeks before the storm andthat the house had been condemned before the hurricane arrived.

Mr. Burnette counseled his audience that when examining claimsfrom a catastrophe, they should keep their eyes open, because thereis an unlimited variety of insurance fraud, much of it perpetratedby persons seeking to make up the cost of their deductibles.

In viewing the televised coverage of New Orleans in theaftermath of Hurricane Katrina, Mr. Burnette said his wife askedwhat was causing the fires burning in buildings throughout the cityand he responded, "The lack of flood coverage."

Mr. Burnette said that in order to prepare for the inevitableinflux of fraudulent claims that follow a catastrophe, insurersshould take a proactive approach and have a protocol for referralsto their special investigation units.

He said that investigators can look forward to getting tips onfraud activity from neighbors, ex-spouses and law enforcement, aswell as contractors who have been approached to do repair work inexchange for kickbacks.

Besides homeowners and corrupt contractors, fraud afterdisasters is committed by "just about everybody," includinginsurance agents and independent adjusters, Mr. Burnettewarned.

Investigators, he advised, should be wary of insureds who seemtoo knowledgeable and those who seem in too big a hurry to settleor those who submit claims that "ask for the moon."

Mr. Burnette said investigators could also expect peopleimpersonating insureds showing up to collect a check and personsfaking pipe breakage damage or contending that items were missingfrom their homes because they were looted or "blown away."

One insured, he related, claimed after a hurricane that 53handguns were blown away from a shack on his property. However,next to the structure were a pile of shoes and a stack ofnewspapers that were untouched. "We were skeptical [of the claim],"Mr. Burnette observed dryly.