New York City has admitted to defrauding FEMA after Superstorm Sandy.
According to a settlement proposed Wednesday, the city agreed to pay $5.3 million to reimburse the U.S. government for fraudulent claims it submitted after the October 2012 storm.
Officials say the New York City Department of Transportation filed the claims for vehicles it said were damaged during Sandy.
But it turns out many of those vehicles were already damaged before the storm hit, and some hadn't been operational in years.
The U.S. attorney for the southern district of New York said in a statement: "When people lie to FEMA about the cause of property damage in order to reap a windfall, it compromises FEMA's ability to provide financial assistance to legitimate disaster victims in desperate need."
The settlement was filed in Manhattan federal court and must be approved by a judge before it becomes official.
