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Press Release

Rep. Jeffries, Seven House Members, Call for Inspector General Investigation Into FEMA Flood Insurance Fraud Debacle

Brooklyn, NY – In the wake of a growing scandal, U.S. Representative Hakeem Jeffries, whose district includes Coney Island, Howard Beach and other areas decimated by SuperStorm Sandy, has called upon FEMA’s Inspector General to investigate potential fraud in the insurance claims process for people who were victimized by the devastating storm.

The letter, which was also signed by U.S. Reps. Charlie Rangel, Steve Israel, Gregory Meeks, Grace Meng, Yvette Clarke, Jose Serrano and Carolyn Maloney, states:

“It has become increasingly apparent that a systemic fraud was perpetrated on a vulnerable group of tax-paying Americans in need of immediate financial relief. In multiple instances, engineering reports regarding storm damage were apparently altered without the knowledge of the author. Equally troublesome, in other cases engineers appear to have been pressured to inappropriately reach specific conclusions that would lower insurance company payments.”

The letter goes on to say:

“Given the urgency of this situation, an independent and comprehensive review of the disposition of SuperStorm Sandy related flood insurance claims is critical. In light of the serious nature of the allegations, FEMA cannot serve as judge and jury of its own potential wrongdoing.”

Jeffries said, “SuperStorm Sandy devastated many communities throughout New York City. Homes were destroyed, businesses damaged and lives turned upside down. In the wake of this tragedy, FEMA failed to oversee a fair and expeditious processing of flood insurance claims. The public deserves to know what happened, why it happened and how we can prevent it from ever happening again.”

In New York, over 300,000 housing units were damaged and more than 260,000 businesses were affected in 2012 as a result of SuperStorm Sandy, the most costly natural disaster since Hurricane Katrina. Many neighborhoods in New York’s 8th Congressional District such as Sea Gate, Coney Island, Canarsie, Manhattan Beach, Brighton Beach and Howard Beach experienced significant damage and disruption.