The FBI have charged 11 people with fraud charges “in connection with a massive pension scam involving fake disability claims by Long Island Railroad workers that COULD cost the agency $1 billion,” according to the New York Post.
The federal complaint alleges that Railroad workers “who were ready to retire falsely claimed to be disabled…so that they could receive extra benefits to which they were not entitled.” It is estimated that retirees who are given disability status add an average of $36,000 to their annual pension payout each year. (It’s like winning the lottery…but illegal!)
The story reports that the workers didn’t do this alone – they had help from doctors who prescribed “unnecessary tests” to “pad the patients’ medical files.” (Doctors are needed in prisons, too, and if convicted, prison would be an appropriate place for these guys.)
Todays “Fraud of the Day” is based on an article entitled, “11 charged in $1B LIRR pension fraud: source,” by Bruce Golding, published by the New York Post, Oct. 27, 2011.