FBI arrests 11 in benefits fraud

The US Federal Bureau of Investigation arrested 11 people on charges of mail fraud and conspiracy to commit healthcare fraud in connection with an alleged $1bn scheme to receive fraudulent disability benefits over 13 years.

The arrests include Long Island Railroad employees, doctors and healthcare administrators who allegedly took part in a “massive fraud scheme” that potentially involved hundreds of rail employees who claimed disability and retirement benefits at the same time.

One of those arrested was a former union president who retired with disability benefits and then allegedly received thousands of dollars to coach other employees on how to receive disability benefits, according to court documents.

Prosecutors say that three doctors ordered hundreds of unnecessary tests and prescribed treatment to support the recommendation that they receive disability from the Railroad Retirement Board, a US government agency, in return for routine payments of $800-$1,200.

Defendants mentioned in court documents allegedly claimed disability at a pre-planned date and then retired. They were observed by investigators playing hours of tennis, rounds of golf and attending step aerobics classes.

They were expected to appear in the US district court later on Thursday.