Update on FEMA fraud case affecting NJ homeowners

Former insurance executive Tom MacArthur, now the elected Congressman to the Jersey shore region, is calling for Congressional inquiry into the latest second round of alleged systematic fraud by FEMA claims investigators. This latest breaking scandal in the claim review process comes a year after FEMA admitted systematic fraud in the underlying claim processing program and accepted responsibility to investigate and correct it. The allegations from the whistle blowers are that the resulting claim review program was actually a deliberate scheme to cover up fraud in the first process.

The reporter in this story personally expressed to me that he doubts that Congress has any interest in getting to the truth. If this were a private insurance company it seems obvious there would be prosecutions. Most of these policies were issued by commercial insurance companies but claims are administered by FEMA. Other questions about the money trail remain unanswered.

I spoke directly with two of the five reported whistle blowers (one FEMA employee and one government official with first hand information) in Washington DC last week and they strike me as credible people with no malice or alternative motivation who are putting their careers on the line.


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