Freeh: Law firm failed to detect BP claims fraud

Sept. 11, 2013 at 8:38 AM
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RICHMOND, Va., Sept. 11 (UPI) -- Former FBI Director Louis Freeh said a Richmond, Va., law firm failed to detect fraud while distributing claims in the BP Deepwater Horizon oil spill case.

BrownGreer is one of five primary law firms tasked by claims administrator Patrick Juneau to help implement the oil spill settlement agreement, which BP has estimated will cost at least $9.6 billion, the Richmond Times-Dispatch reported Wednesday.

A federal district judge in Louisiana tasked Freeh with investigating possible misconduct in the claims settlement program, and the former FBI director said Friday BrownGreer failed to detect fraudulent claims and also resisted efforts to limit costs and create efficiencies.

Freeh also said that while the conduct of some employees in the claims administration office is "problematic," it "should not prevent the [claims center] from fairly and efficiently processing and paying honest and legitimate claims in a timely manner."

BrownGreer partner Lynn Greer said Freeh's findings are "incorrect and not supported by the evidence."

"The report's conclusions on this issue reflect a lack of understanding of the governing criteria for the review of seafood compensation claims that we were required to follow," BrownGreer said in a memorandum filed with the federal court.

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