Administrator of $20 Billion Compensation Fund for Gulf Oil Spill Will Verify Social Security Numbers to Make Sure Funds Are Not Distributed to Illegal Aliens

By Penny Starr | July 2, 2010 | 2:11 PM EDT

Kenneth R. Feinberg, appointed by President Obama to determine executive compensation, speaks at his office in Washington on Aug. 15, 2007. (AP File Photo/Charles Dharapak)

( – The independent administrator of the $20 billion escrow fund established by BP to compenate those harmed by the oil spill in the Gulf of Mexico will check the legitimacy of the Social Security or tax identification numbers of people applying for compensation from the fund to make sure none of the money is awarded to people not legally authorized to work or do business in the United States, a spokesperson told 
President Barack Obama chose Kenneth Feinberg, a Washington, D.C. lawyer,  to design and administer the fund. Feinberg was also chosen last year by Obama to decide the salary caps for top executives of U.S. companies that received federal bail out funds.
“Will Mr. Feinberg or others who are handling claims specifically check for the validity of claimants’ Social Security or tax identification number through the E-Verify program or by other means?” asked Feinberg’s spokesperson.
“Yes, absolutely,” the spokesperson said.

As reported earlier by, Feinberg said he would follow federal immigration and taxation laws when determining the eligibility of the thousands of people and businesses in five states that are expected to seek compensation from BP.

“It’s the law of the land,” Feinberg told on Wednesday in Washington, D.C., where he was testifying before the House Committee on Small Business about administering the $20 billion fund.

Feinberg told the committee that he was in the process of designing the plan for distributing the money and that his experience as the director who decided federal compensation for victims of the 9/11 terrorist attack and the mass killing in 2007 on the Virginia Tech campus would play a role.