MANHATTAN - Ten more former Long Island Rail Road employees have been arrested in a massive pension fraud scheme that prosecutors say involved hundreds of people. Investigators say the 10 defendants retired early and collected disability benefits when they weren't disabled. Some of them collected up to $10,000 per month, according to federal investigators. The FBI says that since 1998, hundreds of LIRR employees have faked disabilities so they could enjoy more lucrative pensions. Back in October, 11 other people were arrested in the scheme, including two Long Island doctors who would allegedly sign off on the disability paperwork.
Federal officials are offering a deal to any LIRR retirees who scammed the system but haven't yet been charged. They are offering amnesty up until a certain date, and say those who turn themselves in will not face charges. Bond was set at $100,000 for nine of the 10 defendants who were arrested today.
11 charged in massive LIRR pension fraud case