Railroad Pension Fraud Scam May Have cost $1 Billion

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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.

Source: Today’s ”Fraud of the Day” is based on an article entitled, ”11 charged in massive $1B LIRR pension fraud: feds,” by Bruce Golding, published by the New York Post, Oct 27, 2011.

Eleven people, including a former union president and two orthopedists, were slapped with fraud charges today in connection with a massive pension scam involving fake disability claims by Long Island Rail Road workers that COULD cost the agency $1 billion, authorities said.

Ten of the 11 suspects — which also include seven former LIRR workers accused of making false pension claims and a former federal railroad pension agency employee — were busted this morning by the FBI for their involvement in the alleged long-running swindle.

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.