Horde of fraudulent attorneys tie up payment of BP oil leak claims

An oil leak fund of $20 billion was started by BP as directed by the Obama administration. A mere pittance of those mega billions has been distributed to Gulf coast residents who say their livelihoods have been overturned by the environmental and economic carnage. Sleazy legal professionals have created a burden for fund administrators who are being badmouthed by seekers of simple cash that are thwarted by demands for legitimate proof of loss. Resource for this article – Horde of fraudulent lawyers tie up payment of BP oil spill claims by MoneyBlogNewz.

Processing claims for the oil spill by BP

A year after the 2010 oil leak in the Gulf of Mexico, the Gulf Coast Claims Facility has paid $3.8 billion in BP oil spill claims — just 19 percent of the $20 billion in seed money set aside by the oil company. The BP oil spill fund has been dispersed by Kenneth Feinberg who was appointed by the Obama administration. Now, 201,261 claims have been paid, he says. There have been many more claims made though. Over 857,000 were made total. In five states there are 35 offices for the Gulf Coast Claims Facility. The BP oil leak claims can be paid by it until 2013, in August. The claims process has been considered unfair, slow and confusing by several individuals getting Feinberg a lot of criticism.

The proof being requested

Feinberg made a statement on Tues about the BP oil leak fund management saying “Amounts requested by claimants very often bear no reasonable relationship to the damages really proven,” since $20 billion was requested by one applicant. About 72 percent of the claims from the BP oil leak have had payments or offers made. There have been claims denied too. Others are pending until more documentation is produced. Fishermen not used to paperwork in deals and generally working in cash are having difficulty figuring out the BP oil claims process. The Coast Guard has not overturned any of the 574 cases disputing payments.

Attorneys attracted by the smell of money

Tens of thousands of Gulf Coast residents — particularly vulnerable populations with language and culture disadvantages for instance the region’s large contingent of Vietnamese fishermen — have been misled into signing up with lawyers or have been unaware that claims have been filed in their name. Feinberg spoke on the fraudulent activity. He said it was “an obstacle to the efficiency and speed in getting the checks out.” The New York Times reports that several law firms have targeted Vietnamese fishermen to con them onto their client lists. The larger the client list, the larger they payout for the attorneys when BP settles the claim. The New York Times reports of a San Antonio law firm that filed claims for thousands of Vietnamese, all listed as deckhands with identical earnings. There was not an acceptance with the claims. People were surprised when they realized they were on the list for a claim.

Information from

CNN Money

money.cnn.com/2011/04/18/news/companies/BP _spill_claims/?npt=NP1

24/7 Wall Street

247wallst.com/2011/04/19/the-BP -20-billion-gulf-claims-facility-has-paid-nearly-nothing/

Los Angeles Times

latimes.com/news/nationworld/nation/la-na-gulf-spill-claims-20110419,0,2595018.story

New York Times

nytimes.com/2011/04/19/us/19spill.html?_r=1