FEMA Signals Possible Deals Over Altered Sandy Reports

By Michael Lipkin (February 17, 2015, 10:16 PM EST) -- A panel of magistrate judges on Tuesday scuttled a hearing over allegations that insurers used secretly altered engineering reports to cheat Superstorm Sandy victims, after the Federal Emergency Management Agency said it was pushing for settlements in all affected cases.

The judges had been expected to explore evidence from five of the homeowners' cases, allegedly bolstering the plaintiffs' allegations that engineering firms U.S. Forensics LLC and HiRise Engineering PC rewrote reports to make it appear damage to their homes was caused by long-term deterioration, as opposed to the storm.

But a FEMA administrator wrote Friday it was concerned about the accusations...

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