The Wall Street Journal is reporting that arrests have begun of 102 people who are alleged to have engaged in fraud to obtain Social Security disability benefits. According to the article, those who have been or will be arrested include former New York city fire fighters and police officers. Also, one lawyer, one disability consultant, and two "recruiters" have been or will be arrested.
Update: A New York Times article has more information on the arrests. Apparently, Facebook pages and other online postings are a major part of the evidence against those being arrested. The attorney who is being charged is Raymond Lavallee, who is 83 years old. Some of the charges being filed are federal charges and some are state charges.
Further Update: The New York Times has posted the indictment in the case. Somebody will have to explain this to me. The defendants are charged with defrauding Social Security but the indictments were under New York state law and the charges are to be heard by a New York state court. I've never heard of this being done.
Update: A New York Times article has more information on the arrests. Apparently, Facebook pages and other online postings are a major part of the evidence against those being arrested. The attorney who is being charged is Raymond Lavallee, who is 83 years old. Some of the charges being filed are federal charges and some are state charges.
Further Update: The New York Times has posted the indictment in the case. Somebody will have to explain this to me. The defendants are charged with defrauding Social Security but the indictments were under New York state law and the charges are to be heard by a New York state court. I've never heard of this being done.
7 comments:
This is wonderful. Hope SSA continues to be serious about widescale disability fraud.
Hm, that is a little odd as it's a federal benefit covered by federal funds. Perhaps they are letting it be pursued by the state since it was the state that was initially defrauded? A little confusing, for sure.
Local Us Attorney declined case and SSA OIG went to local DA. It happens often in small scale fraud cases and often in assault/disruption cases in DOs and HOs.
Given the SDNY US Atty's attraction to the limelight, it is a surprise he declined it. It could be his office is overstretched as many USAOs haven't had any real new hires in several years.
The Manhattan DA (the son of Jimmy Carter's Secretary of State) doubtless leaped at the opportunity to take this case.
The penalties for GL 1st and 2nd are substantial, attempted GL 2nd less so, but it is still a felony. Plus there is forfeiture.
Maybe he does not want to be perceived as going after "9/11 Heroes"
Considering most of those involved in the fraud are former state employees, in particular NYC police and firefighters, it is easy to see why the Manhattan DA would be interested.
I was frustrated for years at the failure of OIG to pursue even the most egregious SSA fraud cases. It is clear that local prosecution is a much better bet, especially in the light of all of the allegations of fraud in SSA. Filing false instruments, grand larceny, etc, are charges that local prosecutors can certainly make against many of these claimants.
OIG is a waste of time...unless they find systemic abuse, they aren't interested.
However, the saying "death by a thousand cuts" is probably applicable. While there are obviously some instances of large-scale abuse (like in this instance), my experience is that most fraud is individual...i.e. The person who collects SSI, but works as a dishwasher/truck driver/waitress/etc. being paid in cash. Those may be relatively small monetary amounts, but the sheer number results in significant cost to the sytem and should be prosecuted.
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