Patrick Juneau, the claims administrator for the multibillion-dollar BP oil spill payouts has asked judges to allow him subpoena power to identify fraudulent claims. Currently, the power of subpoena is held by former FBI director Louis Freeh, who was appointed special master over the claims process in 2013.
Juneau, who was recently subjected to a campaign by BP to remove him from his administrative role, believes that the power of subpoena rightfully rests with the claims administrator.
The oil company has been quite vocal about the claims process and what it deems “unjustified” damages being awarded to businesses and individuals as a result of the months-long oil spill in 2010. As of early May, BP has asserted that the company has paid more than $500 million in fraudulent claims.
Are Fraudulent Claims a Large Problem for BP Payouts?
To date, only 259 fraud claims relating to the BP oil spill have led to criminal charges. Of those, 184 have led to criminal convictions. Fraud analysts have estimated that the percentage of actual erroneous payments is less than one percent.
Federal courts have ruled twice that not all businesses need proof that losses following the spill were directly attributable to the spill. The settlement that BP helped draft and ultimately agreed on assumed that many businesses and individuals living near the coasts affected by the spill would be presumed damaged.
Farrell & Patel – Miami Law Firm
Source: http://www.nola.com/business/index.ssf/2015/05/bp_oil_spill_claims_administra_2.html
