Saturday, January 19, 2013

Shocking and I believe widespread corruption. Look at the tremendous jump in the disability claim numbers countrywide

Jail for rail doc


OK’d $233M in LIRR disability scam

He helped drive the “gravy train” — and now it could cost him millions of dollars and years in the slammer.
A crooked Long Island orthopedist pleaded guilty yesterday to falsely diagnosing hundreds of greedy LIRR workers with disabilities so they could retire early with lucrative pensions.
As part of his plea bargain, Dr. Peter Ajemian agreed to fork over a total of $233 million in forfeiture and restitution, representing twice the amount swindled with his assistance, along with his ill-gotten gains.
But it appeared unlikely that Ajemian, 63, would ever make good on those promises, as his lawyer acknowledged that the doctor doesn’t have anywhere near that much money.
Dr. Peter Ajemian
Dr. Peter Ajemian
Manhattan federal prosecutor Justin Weddle said in court there was ample evidence proving that Ajemian ran a “disability- fraud mill” that let hundreds of perfectly healthy railroad workers “retire to a life of golf, tennis or even second jobs.”
According to the feds, Ajemian raked in more than $2.5 million by recommending at least 734 LIRR workers for disability benefits between 1998 and 2008.
In addition to the crushing debt, Ajemian agreed to serve between 121 and 151 months in prison after sentencing May 24, though the charges against him carry a maximum 30 years.
Ajemian’s plea bargain to conspiracy and health-care fraud came just weeks before a trial at which he would have faced damning testimony from several former LIRR workers who pleaded guilty to scamming disability benefits and are cooperating with the feds.
The long-running scam would have resulted in $1 billion in fraudulent payouts if it hadn’t been uncovered, the feds said.
Only 32 people have been charged, but Manhattan US Attorney Preet Bharara said that an investigation was continuing.
Ajemian refused to comment after the hearing.
Two LIRR retirees, Karl Britell and James Maher, also pleaded guilty yesterday as part of the scandal.
Details of Dr. Peter Ajemian plea deal:
* Pleaded guilty to one count of “conspiracy to commit mail fraud, wire fraud and health-care fraud” plus one count of health-care fraud.
* Agreed to pay $233M .
* Is facing at least 10 years in prison.

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