Fraudulent Claims Mire BP Fund
msnbc.com reports:
NEW ORLEANS — The $20 billion fund responsible for compensating victims of BP's Gulf of Mexico oil spill has received more than 7,000 potentially fraudulent claims, many of which have been referred to the Justice Department for criminal investigations, the fund's administrator told a Senate panel on Thursday.
Attorney Kenneth Feinberg, who is overseeing the Gulf Coast Claims Facility, said of more than 481,000 claims filed, 7,575 are considered potentially fraudulent. The Justice Department has already indicted eight claimants.
The fund was set up in August to handle thousands of claims for compensation from residents, business owners and fishermen across the Gulf Coast and beyond who can prove they suffered financial losses from BP PLC's April 20 oil well blowout off the coast of Louisiana. The Deepwater Horizon explosion killed 11 rig workers and sent millions of gallons of crude into the Gulf.
Feinberg testified in Washington on Thursday before a subcommittee of the Senate Committee on Homeland Security and Governmental Affairs. Lawmakers criticized Feinberg's operation of the fund and the slow pace of processing claims, questioning his commitment to transparency.
