U.S.

Cops, firefighters among 100 former NYC workers charged in disability scam

/ CBS/AP

NEW YORK - Scores of retired New York City police officers, firefighters and prison guards were charged Tuesday with faking psychiatric problems to get federal disability benefits - with some falsely claiming their conditions arose after the Sept. 11 attacks, prosecutors said.

Four ringleaders coached the former workers on how to falsely describe symptoms of depression and other mental health problems that allowed them to get payouts high as $500,000, said Manhattan District Attorney Cyrus R. Vance Jr. The ringleaders made tens of thousands in dollars in secret kickbacks, Vance said.

Among the retirees arrested were 72 city police officers, eight firefighters, five corrections officers and one Nassau County Police Department officer.

Investigators said the scam stretched back more than two decades, with the ex-officers and other workers collecting years' worth of benefits for citing mental health problems so severe that they couldn't work at all. The workers were coached on how to portray their problems, reporting that they were so psychologically damaged that they couldn't take care of themselves, prosecutors said.

 

Accused Social Security scammers Richard Cosentino and Glen Lieberman Handouts/image pixelated by CBS New York
 Many of the officers legitimately had physical disabilities that would have entitled them to state disability pensions, but would not have entitled them to federal Social Security disability insurance, which requires a complete inability to work. Internal Affairs Chief Charles Campisi said many of the officers exaggerated their psychological trauma to gain the Social Security benefits. Most claimed post-traumatic stress disorder and many said it was because of the Sept. 11 attacks, he said. The NYPD has no information that they weren't actually working after the terrorist attack, just that they overstated the effect, he said.

One of the defendants who said he couldn't work taught martial arts. Another former police officer who claimed he couldn't leave the house worked at a cannoli stand at a street festival. Another claimed depression so crippling that it kept him house-bound but was photographed aboard a Sea-Doo watercraft.

Among those arrested was a retired police officer who has since worked helping members of the detectives' union, the Detectives' Endowment Association, with disability claims at an office in Queens. He has been suspended without pay, union President Michael Palladino said.

Many said they could not use a computer but had Facebook pages, Twitter handles and YouTube channels, prosecutors said.

"The brazenness is shocking," Vance said.

More than 100 defendants were charged with crimes including grand larceny. Arraignments in the sweeping case began late Tuesday morning, with several of the defendants pleading not guilty and being released without bail.

Claims of government workers feigning injury to get disability benefits have been the focus of sprawling criminal cases before.

Over the last two years, 32 people were arrested in a probe into Long Island Rail Road employees who collected federal railroad disability benefits; at least two dozen have pleaded guilty. The workers allegedly claimed on-the-job injuries, only to be spotted later playing golf and tennis, working out, and even riding in a 400-mile bike race.

Joseph Gentile, an attorney who represents a former police officer, declined to discuss his case specifically. But he also represented one of the people charged in the railroad case, suggested such charges reflect a troubled system for reviewing and approving disability claims.

"A lot of the problems that occur here are because of systematic problems, not because of someone's criminality," he said. While some people may indeed exploit benefits, "by and large, people have a bona fide, legitimate medical injury. The question becomes: Is the medical problem or injury sufficient to sustain the claim for the benefits?"


© 2014 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

f

We and our partners use cookies to understand how you use our site, improve your experience and serve you personalized content and advertising. Read about how we use cookies in our cookie policy and how you can control them by clicking Manage Settings. By continuing to use this site, you accept these cookies.