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NYC reaches $5.3M settlement over Sandy FEMA funds

February 21, 2019

NEW YORK (AP) — New York City has reached a $5.3 million settlement over charges it improperly billed the Federal Emergency Management Agency for damage to city vehicles caused by Superstorm Sandy.

The U.S. attorney’s office in Manhattan announced details of the agreement on Wednesday.

After the 2012 storm devastated coastal areas of New York and New Jersey, causing billions of dollars in damage, the city’s Department of Transportation applied for FEMA grants to repair or replace city-owned vehicles.

Prosecutors say the DOT submitted a faulty list of Sandy-damaged vehicles to FEMA. They say no effort was made to inspect the vehicles for storm-related damage and that many of them were inoperable long before Sandy.

The DOT said the agency “cooperated fully with the subsequent review.”

The settlement requires approval from a federal judge.

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