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Feds Let Union Pension Scammers Keep $1B

From the New York Daily News:

Feds offer amnesty to hundreds of LIRR pension disability scammers

Fraudster retirees wouldn’t have to pay back their ill-gotten gains

By Robert Gearty
Tuesday, May 22, 2012

HUNDREDS OF LIRR retirees who scammed lucrative disability pensions in a massive $1 billion ripoff can avoid prosecution — and paying back their ill-gotten gains — if they admit guilt under an innovative amnesty program, the feds said Tuesday.

And, of course, promise to vote Democrat.

The amnesty offer was mailed out to more than 1,500 LIRR workers who were able to double-dip on their pensions after retiring early and submitting a bogus disability claim that was rubber-stamped by the federal Railroad Retirement Board.

As with all railroad pensions, the Long Island Railroad’s pension fund is run by federal Railroad Retirement Board. In fact, it is the only pension fund that is administered by the federal government.

The offer came as federal prosecutors in Manhattan unsealed a new indictment charging 10 more LIRR retirees with boosting their regular pensions with fraudulent disability benefits…

He said those who come clean and forfeit future disability payments won’t be prosecuted

Who says crime doesn’t pay?

LIRR workers can retire as early as 50 but can’t collect a supplementary pension from the railroad board until age 65 — unless they are disabled. Then they can start collecting right away…

Those busted Tuesday pleaded not guilty in Manhattan Federal Court and were released on $100,000 bond, except for Frank Plaia, 55, of Long Island, who was released on his own recognizance. Prosecutors said Plaia’s disability claim said he was so crippled he could not dress, bathe, do chores or write without difficulty. Yet, they said, he still shoveled snow and operated a snow blower.

One of those arrested last year was spotted riding in a 400-mile bike race even though he retired from the LIRR with a spinal disability.

All of which is amusing, unless you bear in mind that the number of people claiming Social Security disability has skyrocketed by more than 53% in the last ten years.

Meanwhile, the Associated Press reported just last week:

Ex-postal worker convicted of fraud after running marathon while off mail carrying duty

May 16, 2012

TALLAHASSEE — Prosecutors say a former Florida postal worker ran in the Boston Marathon and participated in other athletic events while claiming her back was too badly hurt to deliver the mail.

A U.S. District Court jury agreed on Tuesday. Jurors convicted 55-year-old Jacquelyn V. Myers of Tallahassee of health care fraud and making false statements to collect workers’ compensation. She could face up to 15 years in prison when sentenced July 25.

Myers reported a lower back injury in May 2009 during the annual letter carriers’ food drive. She was relieved of mail carrying and put on “light duty.” Evidence, including photos and videos, showed she participated in more than 80 long-distance races and triathlons over the next several months. Her race times also improved after the claimed injury.

Hopefully, the prosecutors will relent, and offer to let Ms. Myers skate if she will just agree to stop stealing from the government.

This article was posted by Steve on Wednesday, May 23rd, 2012. Comments are currently closed.

3 Responses to “Feds Let Union Pension Scammers Keep $1B”

  1. dasher says:

    Some people have no shame. I mean, I know I’m one of them, but no shame in the sense of how I dress or look, not when it comes to freakin’ lying AND stealing (I could maybe tolerate the lying…). Yeesh.


  2. GetBackJack says:

    The two enemies of the people are criminals and government, so let us tie the second down with the chains of the Constitution so the second will not become the legalized version of the first.

    Thomas Jefferson

  3. canary says:

    No prison time, and no paying back stolen money.

    ….”He said those who come clean and forfeit future disability payments won’t be prosecuted.

    Under the program, those who cut a deal by July 6 won’t have to return any past disability benefits while those who wait until Aug. 10 will have to return 50%…”

    Read more: http://www.nydailynews.com/news/crime/10-busted-lirr-disability-pension-scam-article-1.1082449#ixzz1vjeMJBxw

    No wonder the death penalty panels for the elderly are already in effect; and the elderly are forced to do “hours and days” of interviews and tests to include “math” problems no matter what health or pain they are in.
    They are being threatened that their medicare bill won’t get paid if they don’t go through the grueling
    hours and days of testing answering questions and figuring problems.
    And when I say some of our elderly are near death seeking treatment and immediately someone is doing an long intake.

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