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bp holdings, bp code 85258080768, BP presents evidence of fraudulent claims, demands temporary halt of claims payments again


BP Holdings, BP Code 85258080768: BP presents evidence of fraudulent claims, demands temporary halt of claims payments again

BP on Monday renewed its request for a federal judge to temporarily halt the payment of millions of dollars of economic claims stemming from the 2010 Deepwater Horizon disaster, charging it has found new evidence of improper payment of claims by an employee at a Mobile, Ala., claims office and of apparent conflicts of interest involving attorneys handling appeals in the payment process.

"These new incidents demonstrate a fundamental lack of oversight or internal controls," said a motion filed by the company. "When BP first asked for a preliminary injunction, it had compelling evidence of one scheme only. Now, the evidence shows the existence of 'a systemic or widespread problem' with the (Court Supervised Settlement Program)."

The motion filed with U.S. District Judge Carl Barbier said a temporary pause in the payment program, which is averaging more than $100 million in approved claims a week, according to BP, "serves the public interest because preventing even the risk of fraudulent payments is in the public's interest and sends a clear message to future litigants that misconduct in settlement programs will not be tolerated."

In mid-July, BP filed its first request for an emergency preliminary injunction, arguing that two of three top lawyers involved in the settlement program "apparently intervened" in the claims process -- and due to the tremendous amount of money involved in the payouts -- the court should grant the injunction to prevent potentially wrongful claims payments.

Barbier denied the motion after BP was unable to produce any evidence of fraudulent claims.

In June, court-appointed claims administrator Patrick Juneau announced that he was conducting an internal investigation after hearing rumors that a top-ranking staff attorney had received portions of settlement payments from clients he had referred to the office before his employment there. On July 2, Federal Judge Carl Barbier appointed former FBI Director Louis Freeh to conduct an investigation. That investigation is not yet complete.