AUSTIN—On Sunday, March 1, 2015, 60 Minutes aired a report investigating evidence that flood insurance claims made by thousands of homeowners in the wake of Hurricane Sandy were denied or underpaid because of fraudulent engineering reports used by insurance companies. That evidence was brought to light in litigation by Texas attorney, Steve Mostyn, and his colleagues at Mostyn Law. In response to 60 Minutes’ report and calls for action issued by several lawmakers this week, Mostyn issued the following statement:
“I am proud that our efforts to expose what appears to be systematic fraud perpetrated by insurance companies and apparently enabled by a lack of oversight from the federal agency that oversees them, is helping to make things right for Hurricane Sandy victims. This is fundamentally an issue about fairness. These victims faithfully paid their flood insurance premiums each month hoping against a disaster, but when disaster did strike, many of them were not only denied the coverage they paid for but they were also lied to by insurers acting on behalf of a government agency.
“It’s not right, it’s not fair and I’m pleased that our efforts have sparked a swift response from lawmakers in New York and Washington, D.C. Lawmakers in both chambers of Congress have called for hearings and the head of the Department of Homeland Security has ordered the agency’s inspector general to investigate the situation. I hope that our clients, and the thousands of others impacted, will eventually be made whole. I believe the flood insurance system is broken, and I hope that this exposure will lead to widespread reform in the flood insurance industry, and in the state and federal government agencies that oversee flood insurers.
“I took the Raimey case on pro bono because I believe in fighting for the underdog and making sure that insurance companies hold up their end of the bargain. When you work hard and play by the rules, you shouldn’t have the rug yanked out from under you at your greatest hour of need. Time and again, I have seen dishonest and corrupt behavior by insurance companies wreak havoc in the lives of innocent people. I’m proud of our work in exposing this unethical, immoral and illegal behavior, and hope it results in positive change for American consumers.”
About Mostyn Law
Mostyn Law was founded by Steve and Amber Anderson Mostyn. We have a team of battle-hardened, smart, and tenacious attorneys who will go toe-to-toe with our clients’ adversaries. Mostyn Law is dedicated to helping our clients be made whole. Whether it’s a giant insurance company giving you the runaround, a company that sold you a product that seriously hurt you, or others who have injured you, we can help. Read more about our insurance, defective products, personal injury, complex business and workplace litigation practice areas to learn about our experience and how we can help you get what you are owed. mostynlaw.com