Photo: U.S. Sens. Charles Schumer and Kirsten Gillibrand last week met with the FEMA administrator over recent fraud claims. Courtesy of Flickr.
Federal officials last week announced that the Federal Emergency Management Agency has agreed to reopen and review every flood insurance claim—approximately 144,000—filed by Superstorm Sandy victims, and not limit corrective action to just the 2,200 currently in litigation.
The development comes weeks after FEMA admitted to its role in a fraud scandal, detailing how its National Flood Insurance Program may have cheated thousands of Sandy homeowners out of millions in insurance funds.
Last Thursday’s announcement followed a meeting between FEMA officials and U.S. Sens. Charles Schumer (D-N.Y.), Kirsten Gillibrand (D-N.Y.), Bob Menendez (D-N.J.) and Cory Booker (D-N.J.)
“In this meeting, FEMA acknowledged its failure to oversee a flood insurance program that cheated Superstorm Sandy victims out of much-needed funding to rebuild their homes and get their lives back on track,” Schumer said. “Amongst many necessary reforms, I am particularly pleased that FEMA Administrator [Craig] Fugate and [Deputy Associate Administrator] Brad Kieserman have heard our call and will reopen and review all 144,000 flood insurance claims made by Sandy victims—a critically necessary move. FEMA also made clear that it plans to hold accountable all those who were involved in the program that may have facilitated or fostered this fraudulent behavior. I will continue to work hard, alongside my colleagues, until the National Flood Insurance Program does what it’s supposed to do: fairly pay storm victims, on time and for the damage they suffered.”
During the meeting, according to Schumer’s office, Fugate announced that FEMA is taking steps to develop a process for all Sandy victims who are non-litigants, but believe their claims were unjustly denied or low-balled, to be reopened and reviewed; guarantee claimants gain access to all engineering reports; contact by mail all Sandy claimants to make them aware of the new process and opportunity for review; commence the Sandy Task Force during the week of April 13 to begin evaluation of the program and focus on reforms; and make personnel changes at senior levels of the NFIP.
Menendez characterized the confab as “a very good meeting” and promised to continue to hold parties accountable.
“I intend to hold their feet to the fire every step of the way to ensure Sandy survivors receive the fair treatment they deserve,” he said.
State Sen. Joe Addabbo, Jr. (D-Howard Beach) thanked Schumer and Gillibrand for quickly responding to the fraud allegations.
“I hope to work with federal officials to see this process is executed in a timely, efficient and—above all—fair manner,” Addabbo said. “It is atrocious to even think people who lost everything in Sandy have been shortchanged or taken advantage of. First, FEMA asked for reimbursements for overpayments they mistakenly gave, and now, likely fraudulent assessments—their actions are unacceptable. I hope FEMA learns from their inaccuracies and makes the internal changes needed to properly address the next emergency.”
In addition to the ongoing probe by the Department of Homeland Security Office of Inspector General, state Attorney General Eric Schneiderman has launched a criminal investigation into allegations of widespread fraud perpetrated against Sandy victims.
By Michael V. Cusenza michael@theforumnewsgroup.com
