Whistleblower on flood insurance 'fraud' to speak at local meeting Tuesday

Whistleblower on insurance ‘fraud’

addresses Sandy victims June 30th

Andrew Braum, the independent New York engineering inspector who exposed what he called insurance companies’ fraudulent alterations of Sandy damage reports, will talk to Jersey Shore homeowners on Tuesday (June 30).

He will urge them to take FEMA up on its offer to reopen flood insurance claims, because he found that 96 per cent of his reports were changed by the companies. He appeared on CBS-TV’s “60 Minutes” and racketeering lawsuits have been filed against several insurance firms.

Braum will be featured in the second of two public meetings to be held that afternoon by the grassroots citizens organization Stop FEMA Now.

The first will focus on the state’s Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program, beginning at 3:30 p.m. Braum will take part in the second meeting, beginning at 5 p.m. Both will be in the Silverton First Aid Squad building at 86 Maine Street in Toms River.

“Most owners of storm-damaged homes are tired, angry, afraid or confused about the state’s Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program,” asserted George Kasimos, founder of Stop FEMA Now. “That’s why we’re holding a public information session on Tuesday with officials of the New Jersey Department of Community Affairs, which is responsible for the troubled RREM Program.”

He invited Shore property owners to the 3:30 meeting, which will include David Reiner, deputy commissioner of the state’s Department of Community Affairs, and Samuel Viavattine, director of the DCA’s Sandy Recovery Division. Following their public discussion with Kasimos, there will be a question-and-answer period with audience members.

The 5 p.m. follow-up session will cover specific details of reopening damage claims with both RREM and FEMA.

Kasimos, a mainland Toms River resident whose home was hit by the storm surge, will urge Sandy victims to reopen their claims with the state’s RREM program and the Federal Emergency Management Agency (FEMA). Braum, the whistleblower engineer, will stress the value of reopening flood insurance claims.

“Those who were underpaid or denied have nothing to lose by seeking additional funds,” Kasimos stated. He will discuss what constitutes the RREM definition of “substantially damaged,” the possibility of duplication of benefits and the threat of “claw-backs” of payments received.

Among RREM issues to be addressed are:

• Whom to call when a DCA adviser or engineer fails to respond to homeowners?
• What are specific instructions on how contractors are to bill RREM?
• If a homeowner did the work, why isn’t it credited as if a contractor did it?
• Why doesn’t the DCA release its “secret” price-list for approved work?
• What are valid reasons for time extensions, and can they be more than 3 months?
• Why is changing from RREM’s Pathway C to B so difficult for some, and often denied?
• If engineering costs are borne by owners, why don’t they receive engineering reports when moving from Pathway C to B?
• Why are Pathway C residents banned from their own homes?
• Why are some people getting $15,000 for “soft” costs in addition to the $150,000 grant, and others getting it only as a contingency?
• If a homeowner reopens his or her claim and gets additional money, will he or she be forced to raise the home?

“It’s been 32 months since Sandy, and not enough homes have been restored. Too many people are still suffering,” Kasimos said. “Many are frustrated and lost their patience long ago. Many are losing hope, losing their life savings and even losing their homes.”

Stop FEMA Now recently held a public protest rally in Trenton about the slow pace and numerous problems with the state’s housing storm recovery program. Last year, with thousands of members in affiliated organizations across the country, the activist group pushed Congress to pass the Homeowners Flood Insurance Affordability Act. This year it successfully fought to have FEMA reopen flood insurance claims, after Braum ”blew the whistle” on a New York engineering firm working for an insurance carrier.