BP Says It Finds New Evidence of Fraud in Spill Payouts

by Karl Utermohlen | August 6, 2013 2:00 pm

BP Says It Finds New Evidence of Fraud in Spill Payouts

Back in 2010, BP (BP[1]) was responsible for the largest accidental oil spill ever, and the company has been paying a pretty penny for the harm it caused nearby residents and workers. However, it appears some people might be taking advantage of the situation by squeezing every penny they can from the oil juggernaut.

BP is attempting to suspend the relief payments related to the Gulf of Mexico disaster due to possible fraudulent claims and conflicts of interest, according to Reuters[2]. The company says a spill claims center worker in Alabama was flagged through the company’s fraud hotline. BP says it was told the worker was helping others fill out false claims in exchange for some of the settlement money.

In another case, BP cited conflict-of-interest worries about two lawyers who worked together prior to reviewing claim appeals for the BP case.

The company filed with the U.S. District Court to halt these payments until an ongoing investigation regarding these payouts is complete. A similar request to suspend these payments was rejected on July 19 by a federal judge.

Endnotes:
  1. BP: http://studio-5.financialcontent.com/investplace/quote?Symbol=BP
  2. according to Reuters: http://www.reuters.com/article/2013/08/05/us-bp-spill-idUSBRE97410Z20130805

Source URL: http://investorplace.com/2013/08/bp-finds-new-evidence-of-fraud-in-spill-payouts/
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