On March 1, 2015, 60 MINUTES exposed widespread engineering fraud within the National Flood Insurance Program in their story “The Storm After The Storm.” In response to the exposé, the Federal Emergency Management Agency (FEMA) agreed to settle over 100 pre-litigation cases with Mostyn Law for over 11 million dollars. However, after FEMA’s initial agreement, 7 more long months of roadblocks and delay by FEMA went by with no payment to these families. On November 1st, 60 MINUTES aired the update below and as a result, FEMA appears to have finally ended their stonewalling. Mostyn Law’s clients have started receiving settlement documents from FEMA to start the process of resolving the pre-litigation claims.
Below is the transcript from the November 1st 60 MINUTES – Update
Now an update on a story we called “The Storm After The Storm.”
Last March, Sharyn Alfonsi reported that following Superstorm Sandy, engineering reports on damaged houses were altered to reduce insurance payouts.
The insurance program was backed by FEMA, the Federal Emergency Management Agency. And the flood program’s head, pledged to make the storm victims whole.
ALFONSI: So, are you going to make it right?
BRAD KIESERMAN: I’m doing everything I can in the midst of negotiations, to try to make that right.
Immediately after our story aired, FEMA agreed to settle 101 cases for 11 million dollars. But now, seven months later, not one of those families has received a check.
I’m Scott Pelley. We’ll be back next week with another edition of 60 MINUTES. Tomorrow be sure to watch CBS This Morning and I’ll see you on the CBS Evening News.
Next steps for unsettled Sandy cases:
Mostyn Law is in the process of working with FEMA adjusters to review over 300 Sandy claims for our clients. For cases still in litigation, we are working to exchange documents with FEMA and Write Your Own Carriers pursuant to the Court’s Case Management Orders so we can move forward to resolution of the claims.
Prior results do not guarantee a similar outcome.