Here’s what happened.
Recently, U.S. District Judge Peter Beer, an icon of Louisiana conservatism, dismissed a lawsuit filed by several former insurance adjusters who were prepared to testify that a number of major private insurance companies systematically over-billed the National Flood Insurance program by shifting their expenses over to the federal flood program.
Judge Beer said the suit could be continued under a “different whistleblower lawsuit in Mississippi” that deals with denial of hurricane wind claims and possible fraud against the federal flood program.
The problem is that the “cheating” occurred in Louisiana!
That didn’t deter Judge Beer. He reasoned that the rules of the False Claims Act provide that a whistleblower lawsuit can't proceed if another on the same subject has already been filed. The Mississippi lawsuit was unsealed and became public knowledge after the Louisiana lawsuit had been filed.
We need a congressional investigation into the over billing of the National Flood Insurance Program, with demands to know why the U.S. Department of Justice and Homeland Security are not pursuing the matter. Read: Rebecca Mowbray, New Orleans Times-Picayune La. whistleblower suit dismissed