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EARTHQUAKE: THE LONG ROAD BACK : 5 Arrested in Crackdown on Food Stamp Fraud : Relief: Federal officials vow to ensure that only the needy get disaster aid. Meanwhile, Caltrans announces more improvements to help with this week’s commute.

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TIMES STAFF WRITERS

Federal officials vowed Sunday to crack down on fraud in emergency food stamp and disaster relief programs, the day after five men were arrested on suspicion of illegally buying food stamps from quake victims outside a South-Central Los Angeles assistance center.

“We had identified rather large-scale trafficking going on there,” said Dave Dickson, regional inspector general for the U.S. Department of Agriculture, which administers the food stamp program. “We will not tolerate this action anywhere in Los Angeles.”

Quake victims leaving the food stamp distribution center were approached by men offering cash for food stamps, usually half the face value, Dickson said.

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Dickson believes the five may have had a tie-in with an unidentified small retailer who would redeem the coupons for full face value.

He said officials want to discourage food stamps from “becoming a second currency on the street” in the aftermath of the earthquake. By Friday afternoon, more than $25.4 million in emergency food stamps had been approved for quake-affected areas.

More than 112,000 individuals had applied for emergency food stamps through Saturday, when reports of double-dipping and padding of claims prompted officials to close down the application process for a day.

More than 90,000 applications had been approved by Saturday afternoon, the same day federal and county officials imposed a three-day waiting period between applying for and receiving food stamps.

It was the first of several mechanisms to screen out unqualified applicants. After the quake, the county had lifted its food stamp screening procedures to speed help to quake victims. But a flood of false and inflated claims prompted officials to impose the waiting period and heighten scrutiny of applications.

A special computer system began operating Sunday to screen out fraudulent or duplicate applications. Even before that, a total of 2,168 applications had been rejected

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The five men arrested are to be arraigned today in federal court on charges of unlawful acquisition and possession of food stamps. If convicted, they face maximum penalties of five years in prison and $250,000 in fines.

When they were taken into custody by USDA investigators and LAPD officers, the men had about $5,000 in food stamps and $2,500 in cash, Dickson said. Five others were questioned and released.

Bill Ludwig, administrator of USDA’s Food and Nutrition Services, said the agency intends to do whatever is necessary to “ensure that emergency food stamps only go to eligible people.”

Emergency food stamp offices are expected to reopen today at 7 a.m., but the number of sites has been reduced from 29 to 16 to help law enforcement consolidate its crowd control. Scuffles broke out at several sites last week where lines of more than 1,000 people waited for hours to get the food coupons.

To make up for the closed sites, four large centers will be opened at Dodger Stadium, Whittier Narrows Recreation Area, Victoria Park in Carson and the county building in Commerce.

Officials emphasized that only low-income people who suffered such earthquake losses as residential damage or power failures that spoiled food are eligible. A family of four which meets those criteria and certain income limits can receive up to $375 in food stamps.

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USDA officials asked for the public’s help in reporting any suspected food stamp fraud through a toll-free number, (800) 424-9121.

Citing experience in previous natural disasters, officials from other federal agencies pledged to be vigilant in checking other earthquake relief applications to ensure that only those affected by the quake and in need will receive aid. Several hundred investigators from a number of federal agencies are working throughout the quake-affected areas.

James Lee Witt, director of the Federal Emergency Management Agency, said more than 208,000 applications for disaster assistance have been received since the 6.6-magnitude quake Jan. 17.

FEMA officials intend to search for duplicate applications, verify the occupancy and ownership of damaged buildings, and double-check the scope of property damage.

John Carey, the agency’s general counsel, said FEMA will pursue all allegations of fraud and abuse received through its special toll-free phone number, (800) 323-8603.

Those who have filed a claim and later found that the loss is less or greater than estimated should call (800) 462-1069.

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Representatives of the U.S. Department of Housing and Urban Development said they are watching for evidence of post-quake rent gouging, but have not seen any yet. HUD teams will also be checking for racial discrimination in housing.

Officials were heartened Sunday that the number of people living in emergency shelters and tent cities dropped to about 4,800 despite a magnitude 5.0 aftershock early Saturday.

“The tents are going down,” Witt said.

“People are starting to realize that aftershocks are a very normal part of what happens after a major earthquake,” said Paul Flores, deputy director of the state Office of Emergency Services.

Quake victims in the Fillmore area of Ventura County will be offered emergency housing in trailers because of the lack of other housing in their towns, Witt said.

Two more FEMA disaster assistance centers are to open today at Coast Federal Bank, 18000 Chatsworth St., Northridge, and at William S. Hart Park, 24151 N. Newhall Ave., Newhall.

As the region enters its third week of coping with crippled freeways, Caltrans officials said traffic should move more smoothly today around damaged portions of the Golden State Freeway (Interstate 5) in the San Fernando Valley, thanks to a new 2 1/2-mile detour along The Old Road from Weldon Canyon Road to Calgrove Boulevard.

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In addition, two southbound lanes connecting the Antelope Valley Freeway (California 14) to I-5 reopened Friday.

Meanwhile, a new Metrolink station set to open today south of Palmdale is the first in a series of train and bus improvements in the works for the coming months--including an ambitious plan to link the Antelope and Santa Clarita valleys to the West San Fernando Valley with Metrolink service.

The Vincent Grade/Acton station is little more than a large parking lot with two long boarding platforms. But officials say that because it is closer to Los Angeles and San Fernando Valley areas than either the Lancaster or Palmdale stations that opened a week ago, it will save commuting time for south Antelope Valley residents.

Other upgrades are expected in the next several weeks:

* Next Monday, two Metrolink train stations are slated to be opened--one in Canyon Country on Via Princessa, the other in Northridge at Parthenia Street and Wilbur Avenue--and a third train will be added each weekday to the Antelope Valley.

* On Feb. 14 or 21, Metrolink officials hope to open another station in Camarillo, extending the Ventura County train line terminus about 13 miles.

* By the end of February, Metrolink executive director Richard Stanger said, the agency hopes to have developed a train connection allowing passengers to transfer from north county lines to trains heading for the West San Fernando Valley.

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In other developments, rebuilding work began on the collapsed Gavin Canyon bridge on the Golden State Freeway near Santa Clarita, meaning that the freeway route should be open before summer, Caltrans officials said. A bypass is now being used.

Times staff writer John Chandler contributed to this story.

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