TWO MORE
HOMEOWNERS ALLEGE THAT REPORTS WERE FORGED TO DENY OR REDUCE HURRICANE SANDY
INSURANCE CLAIMS. HIRISE, U.S. FORENSIC
ARE ACCUSED OF “DOCTORING” THE INSPECTION REPORTS TO DENY OR MINIMIZE PAYMENTS
TO THE FLOOD VICTIMS.
Updated January 13, 2015 8:01 PM
Lawyers for homeowners in Long Beach and East Rockaway
filed documents in federal court Tuesday saying they have uncovered two more
instances of engineering companies forging reports to deny flood insurance
settlements to superstorm Sandy victims.
The filing, in the Eastern District of New York, is the
latest in a series of civil allegations accusing two firms, GEB HiRise of
Uniondale and U.S. Forensic of Metairie, Louisiana, of secretly rewriting
reports to blame damage on gradual long-term deterioration, rather than
flooding. The move, lawyers say, was part of a broad scheme to deny homeowners
thousands of dollars in coverage from the government-run National Flood
Insurance Program.
HiRise and U.S. Forensic, which have denied wrongdoing,
did not reply to requests for comment Tuesday.
The companies have now been accused of doctoring five
reports for homes on Long Island and in Brooklyn after the 2012 storm. Lawyers
for homeowners say they expect to file evidence of additional forgeries in the
coming weeks.
Flood insurance is underwritten by the federal
government, but FEMA hires private companies to administer policies and adjust
claims. Lawyers for homeowners say the program encourages private insurers and
engineers to lowball settlements by penalizing them for overpayments to
homeowners -- but not for underpayments.
The allegations of forgeries have arisen from among the
roughly 1,000 pending federal lawsuits filed by homeowners who say they were
shortchanged on Sandy flood insurance settlements.
The New York State attorney general's office has opened
a criminal probe. The Federal Emergency Management Agency, which runs the
National Flood Insurance Program, is undertaking its own investigation.