Washington, DC – Congressman Tom MacArthur today announced that his office has unveiled FEMA whistleblowers directly involved with Hurricane Sandy flood insurance claims. In March of 2015, CBS’s “60 Minutes”, interviewed a senior FEMA official who told viewers that thousands of Superstorm Sandy victims had been wrongfully denied insurance claims due to corrupt and fraudulent practices.

Following the release of this interview, Congressman MacArthur called on FEMA Administrator W. Craig Fugate to resign and for the federal government to launch a formal investigation into these allegations. The report of that investigation was recently released and concluded that FEMA lacked the internal controls necessary to manage and mitigate NFIP’s funds, placing them at risk for fraud, waste, abuse, or mismanagement.

Following the release of this report, additional documents and signed affidavits from former FEMA employees have been brought to light, with one such affidavit stating the reason for leaving FEMA was the “elaborate process designed to justify minimal payments to policyholders irrespective of the actual merits of their claims.”

“Today my office has unveiled FEMA whistleblowers that were directly involved with flood insurance claims following the devastation of Hurricane Sandy. Their brave move to come forward exposes a systemic effort by FEMA to wrongfully deny the claims of Sandy victims. This provides our office the catalyst needed to demand a thorough and independent investigation into this matter. FEMA has failed to provide the appropriate oversight and controls necessary to assist the most vulnerable victims. My constituents have been wronged, and they deserve justice. The federal government cannot and should not be immune to the consequences of their actions.”

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