Electronic Data Systems Inc. and Travelers Casualty and Surety Co.

Baltimore, MD: In 2000, Wayne Lutz filed a whistleblower lawsuit in federal court alleging his employer and insurance giant Travelers Casualty and Surety Co. defrauded the National Flood Insurance Program by knowingly paying claims for losses not covered under the federal flood program. Lutz came forward after noticing Electronic Data Systems was processing flood insurance claims on backdated policies written by Travelers. He was locked out of certain parts of the computer system and was ultimately laid off from his job. Electronic Data Systems and Travelers will pay the government a combined total of $2.85 million; Lutz will receive $600,000. (Jan-22-07) [EXAMINER: FLOOD FRAUD]

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