"In this matter, the conduct of The Andry Law Firm is particularly egregious," the report said. "In effect, Mr. Jon Andry's AndryLerner firm was making secret, improper payments to Mr. Sutton at the precise time Mr. Sutton was a senior CAO attorney, working in concert with Mr. Jon Andry to expedite payment of The Andry Law Firm claim."
Michael Walsh, an attorney for Lionel Sutton, said Freeh's allegations about his client's conduct possibly warranting a criminal investigation are "absolutely unfounded."
"There was no criminal activity on Mr. Sutton's part," Walsh said. "If Mr. Sutton had done anything criminally wrong, he would not have cooperated with Mr. Freeh."
James Cobb, a lawyer for Andry, said his client hasn't done anything wrong and doesn't deserve to be smeared by Freeh.
"It appears to me that Mr. Freeh reached a conclusion first and then worked his way backwards, citing facts which are unsupported in the record," Cobb said.
Lawyers for Lerner and Reitano didn't immediately respond to emails seeking comment.
Sutton resigned from his job at the settlement program in June. Reitano was fired later the same month. She has demanded to be reinstated, saying she didn't do anything wrong.
BP had asked U.S. District Judge Carl Barbier to suspend all settlement payments to businesses and residents pending the outcome of Freeh's investigation, but the judge denied that request on two separate occasions.
In April 2010, the oil drilling rig Deepwater Horizon exploded off the Louisiana coast, killing 11 workers and triggering the massive oil spill.
BP set up a compensation fund for individuals and businesses hurt by the spill and committed $20 billion. Juneau took over the processing of claims after the settlement was reached last year.
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