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News
October 28, 2014

More Questionable Gulf Oil Spill Claims; Cost Overruns on Settlement Audit

Two news stories today highlight the efforts to reasonably contain the growing costs associated with the Gulf Oil Spill settlement claims.

First, the National Law Journal reports that former FBI Director Louis Freeh, appointed as a special master to weed out fraud in the claims process, wants “an Alabama commercial fisherman to return $330,332 in claim money he received based on tax returns that were never filed” with the IRS.

This is the fourth reimbursement request made by Free since he began his investigation.

At the same time, Crain’s Chicago Business reports that BP is seeking access to an audit of the claims process being conducted by McGladrey. The audit was commissioned by Patrick Juneau after BP “complained about mismanagement in the program.”

The current price tag is estimated at $14-million-plus, which is “allegedly running tenfold over budget” with no end in sight.

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