Bloomberg News

LIRR Workers Said to Claim $1 Billion in False Disabilities

October 27, 2011

Oct. 27 (Bloomberg) -- Ten individuals were arrested by Federal Bureau of Investigation agents today as part of a $1 billion scheme to falsely claim employee disability benefits from New York’s Long Island Railroad, a person familiar with the investigation said.

A long-term fraud probe led by the FBI found that more than $300 million in undeserved benefits were claimed, said the person, who declined to be identified because the matter isn’t public. If all the money claimed had been paid out, losses would have been $1 billion, the person said. The probe was a joint investigation by the FBI, Metropolitan Transit Authority and the office of the Inspector General of the Railroad Board, according to the person.

To contact the reporter on this story: Patricia Hurtado in New York at pathurtado@bloomberg.net

To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net


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