Last month Iposted on alleged fraud by insurance companies in passing the cost of claims onto the National Flood Insurance Program (NFIP). That post contained info on an NFIP memo instructing companies on the flood vs wind issue, specifically to go ahead and pay for flood damage. Experts believe it opened the door to the alleged fraud by sending the message that the federal treasury was the companies’s “cookie jar.”
Now Rep. Gene Taylor (D-MS) has asked a joint oversight subcommitte investigating NFIP and issues exposed by the 2005 hurricanes to “subpoena records of a September 7, 2005 meeting between
the administrator of the flood program, David Maurstad, and
approximately 300 insurance agents in which he outlined the National
Flood Insurance Program’s attitude towards the whole wind vs. water” issue. Here is a good explanation of all this by Taylor via The Gavel…
Related was a post from last week on a federal judge who ordered the Department of Justice to become involved, in the whistleblower case on this alleged fraud of possibly Billions of dollars by the insurance companies, or show cause. US Attorney David Dugas in the Baton Rouge office had said he would monitor the case but not intervene.
Yesterday Facing South had more on this including Dugas’s history of devoting his offices’s resources to going after small time Katrina fraud, his history as a partner at a law firm specializing in “insurance defense-related cases” and his having been state treasurer of the Republican party. He also was recently nominated by Bush for a federal judgeship.