Ten More Arrested in $1 Billion LIRR Pension-Fraud Case
Ten more people have been charged and arrested by the FBI in the Long Island Rail Road disability pension scam.
The FBI arrested six people in Queens and on Long Island and another individual in Florida Tuesday, said Peter Donald, a spokesman for the New York FBI. Three other individuals also surrendered to the FBI in New York City, Donald said.
The 10 new arrests are the latest people to be charged criminally in an alleged scheme allowed hundreds of LIRR employees to retire as early as age 50 with combined pension and disability payments that in some cases added up to the salaries they had received while they were working. Prosecutors claim the alleged scheme had the potential to defraud the U.S.’s biggest commuter railroad of up to $1 billion.
The first arrests in this case were made last fall, and the U.S. Attorney’s Office has vowed to pursue all other law-breaking, former employees unless they promise to cease collecting fraudulent benefits.