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NWC Demands Attorney General Hold the Offshore Oil Industry Liable for Fraud in the Gulf |
Washington D.C. June 15, 2010. In a letter submitted to
Attorney General Eric Holder today, attorneys for the National Whistleblowers
Center called on the Department of Justice to investigate BP and the entire oil
industry, including contractors and subcontractors, for fraud committed against
the U.S. government.
The False Claims Act is the most powerful law available to
deter fraud and enforce federal regulations, like those that govern offshore
drilling. The letter states, "while the purpose of the False Claims Act
is not to protect the environment per se,
it is applicable in this case because it is intended to ensure honesty and
openness when companies do business with and obtain benefits from the United States,
such as a lease."
The letter continues:
"Facts
already on the public record evidence that BP made misrepresentations
about its
safety and emergency response procedures in order to operate under
leases from
the United States and profit from offshore drilling. For example, the
Associated Press reported a series of
material misrepresentations made by BP in both its Deepwater Horizon
Plan and its Regional Spill Plan. These misrepresentations and false statements
include:
-
Vast
overstatements of BP's preparedness to deal with a major leak;
- Vast
understatements of the dangers posed to the environment and the public
by an
uncontrolled leak;
-
False
statements such as listing a national wildlife expert whom the company
would
rely upon for its compliance obligations even though this expert had
died 4
years prior to the submission of the plan.
See Justin Pritchard, et al "BP Spill response plans severely
flawed," Associated
Press (June 9,
2010)
These statements, along with others reported in the national media, constitute compelling evidence that BP violated the False Claims Act (See 31 USC §
3729 et. seq.) to obtain authorization to commence its drilling operations under the lease for the Deepwater
Horizon oil rig. Under the recently amended False Claims Act, all BP contractors
and subcontractors who participated in any manner in a violation of the Act
would be jointly and severally liable. The investigation into BP must include
an investigation into all its contractors and subcontractors."
The National Whistleblowers Center continues to advocate for
whistleblower protections for oil industry employees, and urges members
of the
public to take
action by sending letters to Congress supporting best practice
whistleblower policies.
Employees looking for legal advice can contact the Attorney
Referral Service of the National Whistleblower Legal Defense &
Education
Fund.
Links:
Letter
to Attorney General Eric Holder, June 15, 2010
Protect
environmental whistleblowers action alert
"BP
Spill Response Plans Severely Flawed" Associated Press (June
9, 2010)
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Tags: Environment
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