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Thursday
Oct272011

More Than a Dozen Charged in LIRR Disability Pension Scheme

Joe Raedle/Getty Images(NEW YORK) – Federal agents have charged more than a dozen suspects including a doctor, a union president, and Long Island Railroad retirees, in a disability scam that reportedly cost taxpayers as much as billion dollars. Ten of these individuals were arrested on Thursday.

The FBI uncovered hundreds of fake pension claims after the bureau started investigating why the cash-strapped LIRR had a disability rate three to four times that of the average railroad. 

The fraud was first exposed in a New York Times investigation and government action began soon after, with raids to seize documents and records at pension fund offices.

A network of doctors allegedly prepared false medical records and helped the workers file claims in exchange for cash payments. 

They face 20 years in prison if convicted. 

Copyright 2011 ABC News Radio

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