Lawyers implicated in BP compensation report

Three lawyers have been accused over the BP compensation scheme on Deepwater Horizon.

BP oil spill: questions over compensation Laura Gangi Pond

The accusation came in a 95-page report from Louis Freeh, a former FBI director who was appointed to see if an office administering compensation related to the 2010 Gulf of Mexico oil spill was running the process correctly. Mr Freeh claimed that there was 'ample evidence that three attorneys worked together to corrupt a settlement process, written and administered in good faith'. Lawyer Lionel Sutton received referral fees from the Andry Lerner law firm for claims put through while he worked in the administrator's office,  Mr Freeth also claimed.

US Department of Justice

He urged the US Department of Justice to consider whether Mr Sutton and his wife, Christine Reitano, who also used to work in the administration team, and two lawyers in the Andry Lerner law firm, Jon Andry and Glen Lerner, had breached laws on 'fraud, money launder, conspiracy or perjury'. Mr Freeh also recommended that a US$7.9 compensation claim from the law firm be disallowed. A lawyer representing Mr Andry, James Cobb, said that everyone he knew who was connected to the case was feeling "utter disbelief" at the contents of Mr Freeh's report.

Conflict

Mr Freeh also criticised the use of BrownGreer, another law firm which had been taken on by the administrator of the compensation scheme. In his report, Mr Freeh also claimed, according to The Financial Times, that BrownGreer had 'failed to promptly detect and candidly disclose a conflict of interest'. BP has long suggested that the compensation system was not operated properly. It described Mr Freeh's report as 'shocking'.

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