The FEMA Letter I’d Like To See Go Out…


wrote poignantly of a tenant working as a dishwasher in New Orleans
who had received a letter from FEMA demanding re-payment of 18 months
of hurricane aid…$10K…the equivalant of 2/3 of his yearly income.

At the same time 8 insurance companies
have been named in a lawsuit as having defrauded the now bankrupt
National Flood Insurance Program of potentially billions of taxpayers
dollars. That doesn’t make the news.

But in a JUST America they would receive a letter too…

500 C Street SW
Washington, D.C. 20472

Edward Liddy
Former CEO
Present Chairman of the Board
Allstate Insurance Company
P.O. Box 12055
1819 Electric Rd. S.W.
Roanoke, VA 24018

Dear Mr. Liddy

We are writing in regard to serious
discrepancies which have come to our attention. Allstate Insurance has been named in a False Claims Act
lawsuit. Allegations of the following nature have been leveled by formers professionals once in your employ:

  • Knowingly presenting, or causing to be presented to the Government a false claim for payment;
  • Knowingly making, using, or causing to be made or used, a false
    record or statement to get a false claim paid or approved by the

The federal government takes such allegations seriously.

Therefore we must inform you that all flood
insurance claims hitherto paid by the federal government for claims of
the legal entity of Allstate Insurance Company have been rescinded.

Re-payment of said claims is expected in full within 10 days.

Further be advised in order to ensure prompt
re-payment, the federal government is left with no choice but to make
claim to your 2006 compensation package of $24 million.
All accounts unto which any portion of said compensation package–be it
salary, bonus and/or stock options–have been frozen and are now
subject to federal audit.

We regret that we must take such drastic
action but you leave us no alternative. You can preserve your credit
rating with the federal government by remitting a sworn affadavit of
all wrong doing in the matter of Allstate Insurance Company and the

Have a nice day.


Ida Foundit

Claims Representative #213
Office of Inspector General
Department of Homeland Security
Federal Emergency Managegement Agency

The above letter would also be sent to the CEO’s of the other insurance companies named in the False Claims Act…


State Farm CEO– Ed Rust Jr.–rewarded with $5.26million or 82 percent raise
after posting a record profit in 2006. He earned $11.66 million in
2006, including a base salary of $1.77 million and results-based bonus
of $9.89 million,



Travelers Insurance CEO–Jay Fishman$6.5 million bonus last year. $3.75 million bonus in 2005



Fidelity National Insurance Co — William
P. Foley, II
–In June moved from CEO to Chairman. As CEO had annual base salary of $500,000, with an annual cash bonus
opportunity equal to 250% of his annual base salary for achieving targeted
results. Made the top 10of U.S. company CEOs who posted the largest gains from the exercise of stock options with $154.1 million.



Liberty Mutual CEO–Edmund F. Kelly–Salary and bonus not available. But from a WSJ editorial by Mr. Kelly…

People who willingly and knowingly live in catastrophe-prone areas
should assume the risk, and pay the cost, of doing so;
government-subsidized just loads this risk, and cost, on
average taxpayers. And what proponents of a greater role for the
government don’t like to discuss is that the Federal Flood Program has
a $20 billion deficit



Scottsdale Insuranse CEO–
Michael D. Miller
salary n/a



American National Property & Casualty CEO–Robert L. Moody salary n/a but from the company’s website regarding Integrity

You are required to act honestly and deal fairly and
ethically in all of the Company’s business relationships, whether with
its policyholders, customers, suppliers, competitors, or other Company
personnel. This requirement goes beyond mere compliance with the law.
You should not take unfair advantage of anyone through manipulation,
concealment, abuse of privileged information, misrepresentation of
material facts, or any other unfair or unethical practice

4 thoughts on “The FEMA Letter I’d Like To See Go Out…

  1. Great post, Scout. For additional perspective, let me quote from Sunday’s Editorial in the Times Picayune:
    “A whistleblower lawsuit filed in New Orleans by a group of former insurance adjusters outlines 150 cases in which eight private insurance companies grossly overbilled for flood damages and undercharged themselves for wind damage. The average overpayment in those cases is 66 percent, which is hardly a minor discrepancy. The adjusters who filed suit say that if that level of overbilling is found across all Katrina flood claims, the government could have been overcharged by as much as $9 billion.”
    Emphasis mine.

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