There is more trouble ahead to the National Flood Insurance Program, like a prominent state attorney general’s office has released a study accusing NFIP of wasting countless taxpayer dollars. The office has filed 50 felony charges against an NFIP-affiliated engineering firm for writing doctored reports within the wake of Hurricane Sandy.
The New York attorney general’s office said flood insurance isn't going to offer coverage as advertised and isn't going to police the engineers among others hired to guage damage.
In fact, homeowners were wrongly prevented from seeing copies that belongs to them reports following Sandy, the report alleges.
“It certainly is not transparent to your general consumer,” said Robert Miller, an assistant attorney general who assisted while using research.
Miller as well as other investigators took for the Federal Emergency Management Agency, which oversees NFIP, after it absolutely was discovered that some engineering companies had crafted fraudulent reports eliminating flooding since the cause of damage during Sandy. Doing so allegedly drove up fees collected because of the engineering companies and insurance carriers, and spared NFIP from sinking further into debt.
The office believes FEMA isn't going to exercise sufficient oversight through these private companies, failing to monitor the fees its smart and the way firms manage policies.
“This deficiency of transparency and accountability can and does cause inflated costs, defrauding government entities of possibly millions,” the report said.
The attorney general’s office also levied a 50-count indictment against HiRise Engineering, one of several largest firms handling Sandy claims. According to prosecutors, the reports provided by HiRise engineers were later altered by employees who had never been on the home.
The changes claimed practically no damage for the purpose the homeowner could expect compensation.
Officials suggest HiRise’s crimes extend to outside New York’s jurisdiction, and also have submitted its findings on the US Department of Justice for check in.
The report and indictments come amid ongoing debate above the future of NFIP along with the involvement of personal firms, including insurance carriers and engineering companies. Last month, a bipartisan list of 23 US Representatives called on FEMA to improve its oversight of non-public insurers, including implementing a rule and can find out how much money companies are earning through their participation inside flood program.
In fact, homeowners were wrongly prevented from seeing copies that belongs to them reports following Sandy, the report alleges.
“It certainly is not transparent to your general consumer,” said Robert Miller, an assistant attorney general who assisted while using research.
Miller as well as other investigators took for the Federal Emergency Management Agency, which oversees NFIP, after it absolutely was discovered that some engineering companies had crafted fraudulent reports eliminating flooding since the cause of damage during Sandy. Doing so allegedly drove up fees collected because of the engineering companies and insurance carriers, and spared NFIP from sinking further into debt.
The office believes FEMA isn't going to exercise sufficient oversight through these private companies, failing to monitor the fees its smart and the way firms manage policies.
“This deficiency of transparency and accountability can and does cause inflated costs, defrauding government entities of possibly millions,” the report said.
The changes claimed practically no damage for the purpose the homeowner could expect compensation.
Officials suggest HiRise’s crimes extend to outside New York’s jurisdiction, and also have submitted its findings on the US Department of Justice for check in.
The report and indictments come amid ongoing debate above the future of NFIP along with the involvement of personal firms, including insurance carriers and engineering companies. Last month, a bipartisan list of 23 US Representatives called on FEMA to improve its oversight of non-public insurers, including implementing a rule and can find out how much money companies are earning through their participation inside flood program.
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