Fraud in the Gulf

Ned's friends know that Ned has been tireless in his astute reporting on the mess in the GOM, and he doesn't mean just the spill and its aftermath. Now comes word through Huffpost that the Claims Commission has already determined that more than 7,500 claims are fraudulent or potentially so, such that the Commission has referred many to the Justice Department for investigation. Moreover, of the 400,0000 or so claims that have been filed, the Commission has denied half of those it has acted upon for lack of documentation (imagine requiring documentation to support a claim!) or ineligibility. So far, the Commission has paid out more than $3 billion from the slush fund, but it will run potentially as late as 2013 because claimants have until then to decide whether to sue. Ned predicts that most will decide to take the money and run, because the longer they wait the more likely their claim will be denied. Oh, and what happens if their claim is denied, or they don't get as much as they want? They get to appeal to the Coast Guard. So far, the Coast Guard has denied EVERY ONE of the appeals, leaving many unhappy campers.
Ned recalls the demonization of BP that resulted in the collapse of its stock price and the loss of billions to individual shareholders and pension funds here and in Europe, and now we see that the $20 billion extorted from BP will no doubt be three to four times more than was needed to pay all legitimate claims. Moreover, Ned believes that much of the economic damage was due to hysterical and blatantly inaccurate reporting on the part of the media, which was far more concerned with generating a sense of drama and panic than in getting to the true story. But he is likewise sure that the Obama administration and Gulf politicians will band together to ensure that the company is fined enough so that none of the $20 billion gets to go back to its rightful owners.
Ned's friends can trust him to continue to shine the xenon lamp of reason to stab through the lies, obfuscation and chicanery that has described the event and the claims process.