FEMA Waits 11 Months to Investigate Allegations of Forged Documents to Underpay Hurricane Sandy Claims

By on January 6, 2015

In January 2014, the Federal Emergency Management Agency (FEMA) was warned that government contractors allegedly forged documents to underpay flood insurance settlements related to Hurricane Sandy, but FEMA did not report the issue to investigators until November 2014, according to Newsday.

On November 7, 2014, U.S. Magistrate Judge Gary Brown discovered that an engineering firm retained by Wright National Flood Insurance attempted to cover up damages to a Long Beach, NY residence resulting from Hurricane Sandy with a bogus report and that the improper practices may be widespread.

A class action lawsuit involving similar bogus engineering report allegations was filed against Hartford Insurance Co. in December 2014 on behalf of Hurricane Sandy victims.

Another class action complaint was filed against Fidelity National Property and Casualty Insurance, State Farm, and several other companies based on allegations that the defendant insurance companies mischaracterized FEMA’s definition of a basement and improperly denied Hurricane Sandy claims for damages to first floors in homes on Long Island.
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