(ABC NEWS) Two Hurricane Katrina whistleblowers have shown that a State Farm insurance company committed fraud against the federal government in the mishandling of a homeowner’s claim after the devastating 2005 storm, according to a federal jury in Mississippi.
The decision came Monday in the course of a long, complex legal battle between State Farm Fire and Casualty Co. and former State Farm independent auditors Cori and Kerri Rigsby. In 2006, the Rigsby sisters appeared in a series of exclusive ABC News reports in which the sisters claimed they had witnessed “widespread” fraud at the State Farm offices in Biloxi and Gulfport, Miss.
The sisters said then that they saw State Farm supervisors demanding damage reports be buried, replaced or changed so that claims wouldn’t have to be paid. One damage report, according to the sisters, was hidden in a special file with a sticky note attached to it saying, “Do not pay bill. Do not discuss.”