Critics accuse FEMA of inaction on alleged claim fraud

Critics are accusing FEMA of inaction upon learning that government contractors may have changed their reports to underpay or deny insurance claims for people who were devastated by Superstorm Sandy.

News 12 Staff

Dec 30, 2014, 3:51 AM

Updated 3,496 days ago

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Critics are accusing FEMA of inaction upon learning that government contractors may have changed their reports to underpay or deny insurance claims for people who were devastated by Superstorm Sandy.
The federal agency began its investigation into the matter last month, but an attorney who is representing Sandy victims says FEMA was warned about the alleged fraud almost a year ago.
The allegations came to light after a federal judge found that an engineering company, US Forensics, "secretly rewrote a report reversing its conclusion" about what caused the damage to a Long Beach home so that it would not be covered.
The judge ordered insurers to produce additional records that could help reveal whether engineering contractors edited damage reports that improperly minimized payouts to storm victims. A hearing next month has been scheduled to review the evidence.
The state attorney general has opened an investigation, as has FEMA's inspector general. The insurance and engineering companies have denied any wrongdoing.
As the storm recovery continues more than two years later in hard-hit areas, some say they are hoping that the new investigations will eventually help those who saw their damage claims denied.
AP wire services contributed to this report.


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