New York City will have to repay the Federal Emergency Management Agency $5.3 million after admitting transportation officials made fraudulent claims after Superstorm Sandy in 2012.
The proposed settlement, which must be approved in U.S. district court, said city transportation officials submitted a list to FEMA of vehicles they said were damaged during the storm. Prosecutors said, however, some of those vehicles had been in need of repair before the storm.
FEMA ultimately agreed to replace 132 department vehicles, which cost millions, a statement from the U.S. Attorney's office in New York City said.
"Today's settlement is the successful outcome of a joint investigation ... which uncovered falsified submissions by the city to the federal government that allowed the city to wrongly obtain millions of dollars in federal emergency funds," Margaret Garnett, commissioner of the New York City Department of Investigation, said in a statement Wednesday.