facebook
twitter
rss
account
search
search
 

U.S. to probe WTC insurer for fraud

Dec. 3, 2006 at 4:00 PM   |   Comments

NEW YORK, Dec. 3 (UPI) -- The U.S. government is investigating New York's $1 billion World Trade Center insurance company, which has spent more than $50 million fighting claims.

The Department of Homeland Security will look into charges by Rep. Jerrold Nadler, D-N.Y., that the WTC Captive Insurance Co. violated congressional intent and misspent federal money to dispute more than 6,400 claims, including claims by ailing Sept. 11 responders, the New York Post reports.

Homeland Security inspectors with subpoena power will scrutinize the insurer, the agency says.

The carrier manages the $1 billion Congress approved to pay claims against the city and its contractors from the World Trade Center cleanup.

A report is expected in six to eight months, the Post says.

The insurer would not comment on the investigation, but has argued it has a "duty to defend" against the claims.

Records obtained by the Post show the company has spent more than $50 million on overhead, consultants and fees, including $32.9 million on law firms.

© 2006 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Poland buys medium-range missiles from U.S. Poland buys medium-range missiles from U.S.
2
Great white shark circling surfers photographed by drone Great white shark circling surfers photographed by drone
3
Watch: News anchor resigns live on-air to sell pot, '[Expletive] it, I quit' Watch: News anchor resigns live on-air to sell pot, '[Expletive] it, I quit'
4
Rutgers sophomore Caitlyn Kovacs dead after visit to Delta Kappa Epsilon frat house Rutgers sophomore Caitlyn Kovacs dead after visit to Delta Kappa Epsilon frat house
5
Cop-killer suspect Eric Frein possibly spotted, in standoff Cop-killer suspect Eric Frein possibly spotted, in standoff
Trending News
Video
x
Feedback