A lawsuit filed in South Florida alleges that the American Red Cross and its affiliated agencies misappropriated nearly $1 billion in donations intended to support victims of the devastating earthquake in Haiti in 2010.
The legal action, launched by the Haitian Diaspora Political Action Committee, claims that, rather than providing disaster relief, the organization used the funds to cover its own financial losses and finance projects unrelated to the earthquake.
The Committee, along with a group of donors and beneficiaries, filed a class-action lawsuit on Monday. They claim that the American Red Cross, the International Red Cross and the Haitian Red Cross manipulated public opinion to encourage people to donate through emotional campaigns, before mismanaging or misusing these funds.
After the 7.2-magnitude earthquake that struck Haiti, causing an estimated 300,000 deaths and more than 1.5 million displaced people, the Red Cross and its affiliates reportedly collected nearly a billion dollars in donations. However, according to the complaint, much of this money was diverted to settle the organization’s debts rather than being used for reconstruction efforts in Haiti.
The plaintiffs claim that the defendants, knowing that they had no intention of using the funds to directly help Haiti, deceived the public with public statements, using touching images and videos showing the suffering of Haitians to incite generosity.
The committee states that the Red Cross’ claims about its actions in Haiti, such as building hospitals and repairing houses, are “patently false”. It points out that many projects have been delayed or never completed, leaving survivors without adequate help.
The plaintiffs call the Red Cross a “pimp of poverty”, claiming that it exploits the distress of the most destitute to extract resources from society, while claiming to act on their behalf.
According to the committee, $100 million of the donations collected between 2010 and 2024 were used to cover a financial deficit of $150 million for the organization. A further $400 million was spent on projects with no connection to Haiti or its people.
The plaintiffs claim that, from 2010 to 2024, the defendants prepared responses to disasters in Haiti not to help the victims, but to profit from their suffering.
In response, Nicole Maul, spokeswoman for the American Red Cross, rejected the accusations, calling the complaint “baseless”. She pointed out that all funds raised for Haiti were placed in a restricted account and used only for programs related to earthquake relief.
“The American Red Cross spent and distributed all funds intended for Haiti relief on shelter, emergency relief, health, cholera prevention, water and sanitation, livelihoods and disaster preparedness,” Maul said.
The complaint also highlights the results of a 2015 investigation by ProPublica and NPR, which questioned the effectiveness of Red Cross spending in Haiti. According to internal documents reviewed during this investigation, a significant proportion of donations were absorbed by administrative costs, while staff changes and bureaucratic delays hampered the progress of aid projects.
The investigation revealed that the Red Cross had overestimated the number of houses built and had made dubious statements about the number of people benefiting from its programs.
The plaintiffs are claiming more than a billion dollars in damages on grounds including fraud, unjust enrichment, bad faith and embezzlement. They argue that the Red Cross’ failure to provide adequate aid exacerbated the suffering of earthquake victims.
“The majority of these donations were misused or mismanaged, and those responsible must be held to account,” say the plaintiffs.
The case has been assigned to Chief U.S. District Judge Cecilia Altonaga, appointed by President George W. Bush.
According to several reports on the funds raised for Haiti after the earthquake, less than 1% of the donations collected by the Red Cross were spent on the victims.
The Clinton Global Initiative, set up by former President Bill Clinton and his wife Hilary Clinton, is also facing similar accusations, having been heavily involved in fundraising efforts after the January 12 earthquake.
The earthquake of January 12, 2010 left Haiti devastated. In addition to the loss of life, the disaster caused billions of dollars in damage, rendering roads in the capital, Port-au-Prince, impassable for months. Many survivors were forced to live in makeshift camps, with no access to drinking water, electricity or sewage systems.
Following the earthquake, the international community pledged more than $5.3 billion to recovery efforts, with millions more allocated to humanitarian organizations such as the Red Cross. These funds were earmarked for the “reconstruction of Haiti”. However, very few reconstruction projects have been carried out since then. For example, Haiti’s National Palace, slated for reconstruction, has remained occupied by sheds for over ten years.
This lawsuit adds to the scrutiny of the American Red Cross’ disaster response efforts, particularly in Haiti. Although the organization claims to have honored its commitments, critics point out that a lack of transparency and accountability has eroded trust.
The plaintiffs hope their case will shine a light on allegations of mismanagement and bring justice to those who continue to suffer the lasting consequences of the earthquake.
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