Ex-FBI director to probe possible misconduct in BP fund: report

03 July 2013 00:27  [Source: ICIS news]

HOUSTON (ICIS)--A former director of the US Federal Bureau of Investigation (FBI) has been appointed to probe alleged misconduct by a lawyer who helped run BP’s claim settlement fund in relation to the 2010 Deepwater Horizon oil spill, Reuters news agency reported late Tuesday.

Louis Freeh has been named “special master” by US District Judge Carl Barbier, who currently is hearing the civil case over the Gulf of Mexico incident.

BP had requested an independent inquiry into an allegation that a lawyer working for the administrator of payments had referred claims to a law firm New Orleans, Louisiana, in exchange for a share of subsequent settlement payments, Reuters reported.

BP said in a statement on Tuesday that it welcomed Freeh’s appointment, adding that the former FBI director had been given “wide latitude” to look for other misconduct within the settlement program.

BP has agreed to a $4bn (€3.1bn) criminal settlement, as well as a $525m civil settlement for claims made by the Securities and Exchange Commission (SEC).

The company has also reached an economic- and property-damage settlement with several people and businesses who sued the company following the spill, with claim payouts totalling over $8.7bn.

($1 = €0.77)

Additional reporting by Tracy Dang


By: Jeremy Pafford
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