Thousands of business owners with claims for loss submitted as part of the BP oil spill settlement received an upsetting “gift” in the form of a fraud notice during the Christmas holiday. The notices provided virtually no information supporting the allegations despite the fact that all of the recipients of the claims notices had claims that were pending for at least six months. Many of the claimants had submitted their claims over a year prior, yet there was no factual basis provided in any of the letters to indicate why the claims were being investigated for fraud.
This strategy of threatening fraud seems particularly suspect based on when the fraud notices were mailed. The standard practice under the BP oil spill settlement has been to send out letters to claimants on Wednesdays at 9 p.m. that indicate whether a claim was denied, approved, or lacking in information. However, these letters were sent out at close of business the Wednesday before the company closed for the Thursday through Sunday Christmas period. This tactic left targeted claimants without the option to contact the BP claims office to obtain an explanation or justification for the investigation until the after the Christmas holiday period.
The real goal of this tactic might be to create financial pressure on claimants to abandon legitimate claims for loss. The notices provided absolutely no specific allegations or facts to justify initiating a fraud investigation involving claims that have lingered for a prolonged period. This intimidation tactic often is employed by insurance carriers to intimidate policyholders making claims for theft, fire, or vandalism loss. The thinly veiled threat of criminal liability for fraud combined with the unavailability of information from the insurer for several days could well be designed to exact pressure on claimants to withdraw their claim.
While the fraud notices were short on substantive information, the motivations for the correspondence can be gleaned from the limited information provided to businesses that had submitted claims. The notices indicate that recipients are under investigation by the Fraud, Waste, and Abuse Department, which is under the management of a former FBI Director. The key information provided to recipients involves the claimant’s qualification for a new amnesty program. Conveniently, this new program was launched just a week before sending the notices. According to the correspondence, recipients can avoid potential criminal charges if they abandon their claim.
Many businesses who consider submitting claims as part of the BP oil spill settlement presume that they do not need legal advice and representation. Tactics like these that amount to the denial of potentially valid claims, as well as threats to file criminal charges demonstrate the importance of working with a skilled and experienced BP oil spill claims lawyer.
Our Mississippi BP claims attorneys represent businesses who have suffered losses caused by the BP oil spill. At Barrett Law, our seasoned Mississippi BP Claims Attorney is here to help. Contact our firm today at (800) 707-9577 to schedule your free consultation, so we can answer any questions you may have regarding filing your claim.