“Tens of thousands of homeowners came forward saying the National Flood Insurance Program shortchanged them, dragged them through years-long delays and hid information from them.
The New York attorney general’s office has now found flood insurance does not cover what it promises in its ads, that many engineers and others hired to evaluate damage were not qualified and that homeowners were wrongly prevented from seeing copies of their own reports.
The attorney general’s office on Monday also announced a 50-count indictment charging HiRise Engineering, one of the largest engineering firms handling Sandy claims, with writing allegedly fraudulent reports.
According to prosecutors, the original reports that engineers in the field wrote were then altered by HiRise employees who had never been to the home. The altered reports, which often claimed there was little or no damage the homeowner could be compensated for, were then submitted to insurance companies and FEMA.
Officials from the attorney general’s office say investigators also uncovered evidence of other crimes that fall outside New York state’s jurisdiction. They say they have submitted those findings to the U.S. Department of Justice to follow up.
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