While announcing that eleven people were charged in a billion-dollar Long Island Rail Road disability pension scheme, the federal authorities said that this was just the beginning. According to Newsday, U.S. Attorney Preet Bharara "said his office would explore civil cases to recover money, as well as new criminal cases, and FBI Criminal Division of New York special agent Diego Rodriguez urged people who had been part of the fraud to come forward -- but declined to promise leniency": "Who has better information about this scheme...than those who perpetrated it? We look forward to hearing from you. For those who choose not to contact us, there's a good chance we'll be contacting you."
Feds Urge Those Involved In LIRR Disability Pension Scheme To Step Forward
10 Arrested In Brazen, Billion-Dollar LIRR Disability Fraud Scheme
Three years after the NY Times reported on rampant disability fraud among Long Island Rail Road employees, the federal authorities have arrested ten people for their roles in perpetrating the billion-dollar scam. According to the Times, "Most of the people — those charged in the case include seven former railroad workers accused of making false pension claims, the two doctors and a former federal railroad pension agency employee who helped the workers file the claims — were taken into custody in the early morning hours at their homes by F.B.I. agents and state investigators, the people said."
Won't You Please Help Raise These Adorable Guide Puppies?
Today, the Daily News runs a super-heartstring-tugging story about the troubles facing Canine Companions for Independence, a Long Island-based organization that trains dogs to help disabled people. In a nutshell, Companions can't find any volunteers to help raise the dogs while they're still puppies. Heartstrings!
Healthy Ex-Cop Who Failed Drug Test Still Gets $52K/Year In Disability
We've all been there: you get a nasty shoulder injury and retire on disability. But it heals, so you start moonlighting as a construction worker for some extra cash in addition to your disability pay. But then you have to start ripping lines to stay awake for the construction gig. C'est la vie! Such is the amazing odyssey of former NYPD officer James Seiferheld, who will collect annual $52,365 disability pension despite being deemed healthy enough to work. After authorities found Seiferheld on a construction site a month after retiring under disability in 2003, they ordered him back to the work. A positive cocaine test prevented him from re-joining the force, but the Police Pension Fund must pay him his pension per court order. The system works!
When Drunken Falls Off The Roof Turn Into Disability Lawsuits
A man who fell off the roof of his luxury Williamsburg rental building is now suing the property. But not because he forgot his keys, attempted to climb into his window ("after a few drinks") and was injured when he fell onto a terrace. It's because the building doesn't have a handicap-accessible elevator.
FDNY Docs Approve Big Disability Pensions
This year the FDNY Pension Fund's Medical Board approved 105 disability pensions out of 132 retirees. The problem is they can—nay, must—approve the requests even if there is no evidence linking the firefighters' disabilities to their jobs. Apparently the doctors are forced to approve the tax-free pensions worth three quarters of the firefighter's salary by law—and maybe also out of fear. Once source told the Post that docs regularly approve the pensions ever since board member Dr. Peter-Cyrus Rizzo was shot in 1987 by a disgruntled firefighter who had been denied coverage. "After Dr. Rizzo was murdered, they felt it would just be better to make it unanimous any time they could."
Disabled People Used Access-A-Ride To Get To Casinos
In an article that shouldn't come as a shock to anyone, the Daily News reports that disabled people — just like their non-disabled counterparts — love to gamble at casinos, and they use public transportation to get there. According to the tabloid, Access-A-Ride vans and cars don't just shuttle disabled people to doctors' offices, pharmacies, and supermarkets, they also bring handicapped New Yorkers to the Empire City Casino at Yonkers Raceway.
Collecting Disability Insurance While Facebooking Fun Times
A Canadian IBM employee lost her disability benefits after the insurance company checked out her Facebook profile. According to the Daily News, "Nathalie Blanchard was diagnosed with depression and granted leave from her job at IBM in Bromont, Que." a year and a half ago. She received monthly benefits until Manulife deemed "the pictures Blanchard posted to her private Facebook account prove she is no longer depressed. One showed her having fun at a Chippendales show, another at her birthday party and a third on a beach holiday." Blanchard said she has the same problems—plus her doctor told her she needs fun—and her lawyer said, "I don't think for judging a mental state that Facebook is a very good tool."
Still: Almost All LIRR Workers Approved To Receive Disability
Last year, the NY Times revealed that almost all Long Island Rail Road employees who applied for disability got it—for instance, in 2004, 97% of employees who retired after the age of 50, applied for and received disability and some of those "disabled" retired employees are out on golf courses, hitting the links. Attorney General Andrew Cuomo called it a "cottage industry" of fraud and the Railroad Retirement Board, which oversees claim approval, said it would use greater oversight. But it turns out that a staggeringly high number of LIRR employees are still getting approved for disability.
Railroad Retirement Board Can't Say No to Disability Applicants
The NY Times follows up its look at how over 90% of Long Island Rail Road employees apply for—and get—disability payments with an examination of the federal Railroad Retirement Board that approves disability. Apparently LIRR president Helena Williams wanted to attend a meeting (after learning about the LIRR employees' alleged abuse of the system), but "The board, with about $34 billion in assets, had not met formally in nearly two years, and no new meeting was scheduled. The three board members, all full-time presidential appointees, rarely met even in private, employees of the agency say." Last year, the board approved 98% of applications. and the NY Times reports the doctor who is meant to monitor the disability grants never ordered capacity evaluations to see if the applicants are truly disabled: "And of the 120 cases she reviewed last year, how many disability decisions did she disagree with? According to board officials: zero."
NY Lawmakers Discuss LIRR Disability Questions
The NY congressional delegation had "very productive" talks with the U.S. Railroad Retirement Board to discuss reforms. Last month, the NY Times found that since 2000 virtually all LIRR employees applied for--and received--disability payments, raising questions about the USRRB's approval process (the board grants pensions). Newsday reports the USRRB is considering including "independent medical doctor to review disability claims; better oversight of the board's Long Island district office; and a re-evaluation of past LIRR retiree disability cases." Senator Charles Schumer said, "If somebody gets disability [benefits] and is then out playing golf five times a week, they ought to not have them," and added, "We all know something is rotten in Denmark."
LIRR Announces Measures to Prevent Disability Abuse
Two weeks after the NY Times found that virtually most retired Long Island Rail Road employees since 2000 have successfully applied for disability payments--at a cost of $250 million in federal funds--the LIRR president Helena Williams announced she is creating a unit to review disability applications, requiring LIRR workers to undergo ethics training, and asking for legislation to overhaul the U.S. Railroad Retirement Board, which approves disability requests.
LIRR Disability Investigation Prompts Feds to Raid Office
Yesterday, the Westbury, Long Island office of the Railroad Retirement Board was was raided by federal agents who are investigating possible fraud in disability payments to Long Island Rail Road retirees. While the NY Times recently detailed how 90-97% of LIRR employees were applying for--and receiving--disability benefits upon retirement since 2000, it turns out the feds had been investigating the situation for the past six months.
Paterson, Cuomo Troubled by Allegations of LIRR Employees' Disability Abuse
After the NY Times' sprawling investigation showing many Long Island Rail Road employees apply for--and get--disability payments after reaching the retirement age of 50, Governor David Paterson is asking Attorney General Andrew Cuomo to investigate the situation. The Times found that LIRRemployees have received $250 million in federal disability payments since 2000, while the MTA's other commuter railroad, Metro-North, has nowhere near those numbers of disability claims.
Why Are So Many LIRR Retirees on Disability?
The NY Time has a huge, front page article on the curious "disability epidemic among" Long Island Rail Road retirees. In a nutshell, the article points out how many LIRR employees apply for disability after retiring...and they end up getting those federal payments. Back in 2004, 97% of employees who retired after the age of 50, applied for and received disability.

