Taking care of folks who need it during a disaster, even if that includes spending tax money, is the kind of activity that separates us from animals.
I am a very generous, compassionate and caring person. Many people here on SI know that for a fact (some just plain think that I am an ass, of course). I don't need taxes to force me to be generous in a time of need. And, ideologically, I would never presume to force someone to have be generous, compassionate or caring. I think that the mere fact that it is a forced action negates those characteristics anyway. What it tells me is that you are very generous with other people's money.
No, it is not well-known that massive fraud took place in Northridge, though it wouldn't surprise me. Fraud is hard to prove; folklore doesn't require proof.
Well, there were several prosecutions that I am personally aware of. But, don't take my word for it....
fff.org Whether it is paying for snowplowing in West Virginia or bombarding voters with unsolicited checks in North-ridge, California, (I know this to be true, btw)
americanpatrol.com
claimsguides.com
gao.gov
Some non-northridge fraud sun-sentinel.com
slate.msn.com
because you are uninformed, does not mean that it isn't well known outside of folklore, of course.
try a google search on northridge earthquake fema fraud |