BP finds new fraud in Gulf spill payouts

Deepwater Horizon Spill Site

BP has said it has discovered new evidence of fraud and conflicts of interest in the program that is paying billions of dollars to those who claimed they were harmed by the 2010 Gulf of Mexico oil spill.

Reuters reports that BP has said it has discovered new evidence of fraud and conflicts of interest in the program that is paying billions of dollars to businesses and residents who claimed they were harmed by the 2010 Gulf of Mexico oil spill.

'BP should not have to face the substantial risk of irreparable harm from improper payments', the company said.

BP has already incurred about $42.4bn of charges related to the disaster. It originally expected the payout program to cost $7.8bn, but last week boosted its estimate to $9.6 billion and said it could go much higher.

The program was designed to compensate victims of the April 20, 2010 explosion of the Deepwater Horizon drilling rig and rupture of BP's Macondo oil well, a disaster that killed 11 people and resulted in the largest U.S. offshore oil spill.

Patrick Juneau, the Louisiana lawyer who administers the payout program, previously announced an internal probe of allegations that a former worker in the payout program referred claimants to lawyers in exchange for a share of payments.

To access the complete Reuters article hit the link below:

BP says found new fraud in Gulf Spill payouts

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image: © Deepwater Horizon Response

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