Oil and Gas

Court hears from targets in federal oil spill settlement investigation

by Patrick Flanagan

Targets of an investigation of alleged corruption within the settlement program for compensating victims of the 2010 Gulf of Mexico oil spill will be in federal court Tuesday.

NEW ORLEANS (AP) - Targets of an investigation of alleged corruption within the settlement program for compensating victims of the 2010 Gulf of Mexico oil spill will be in federal court Tuesday.

U.S. District Judge Carl Barbier's docket shows a status conference about procedural issues since he told the four lawyers to respond to allegations in a report by ex-FBI director Louis Freeh.

Freeh recommended disqualifying an $8 million claim and disqualifying the lawyers from representing oil spill claims.

Two, Lionel Sutton and his wife, worked for claims administrator Patrick Juneau. Freeh said the others used Sutton to expedite their claim, in return giving him $40,000 in fees from payments on claims he'd referred to the firm before joining Juneau's staff.

It was not clear whether the conference would be open to the public.