Hundreds of Long Island Rail Road retirees who scammed lucrative disability pensions in a massive $1 billion ripoff can avoid prosecution -- and paying back their ill-gotten gains -- if they admit guilt under an innovative amnesty program, the feds said Tuesday.

The amnesty offer was mailed out to more than 1,500 LIRR workers who were able to double-dip on their pensions after retiring early and submitting a bogus disability claim that was rubber-stamped by the federal Railroad Retirement Board.

The offer came as federal prosecutors in Manhattan unsealed a new indictment charging 10 more LIRR retirees with boosting their regular pensions with fraudulent disability benefits.

“The LIRR is a commuter railroad, not a gravy train,” said Manhattan U.S. Attorney Preet Bharara in announcing the new arrests and the amnesty offer. He said those who come clean and forfeit future disability payments won’t be prosecuted.

Under the program, those who cut a deal by July 6 won’t have to return any past disability benefits while those who wait until Aug. 10 will have to return 50%.

In October there were 12 arrests -- two doctors, the office manager of one of the doctors, two “facilitators” connecting retiring workers to the physicians and seven LIRR retirees. At the time, the FBI encouraged other fraudulent disability pensioners to come forward, but apparently got few takers.

FBI New York Director Janice Fedarcyk reiterated Tuesday that it would be better for ex-workers who defrauded the government not to wait. “If you are culpable in this fraud, the voluntary disclosure program is certainly a better choice than crossing your fingers and hoping we won’t find you,” she said.

LIRR workers can retire as early as 50 but can’t collect a supplementary pension from the railroad board until age 65 -- unless they are disabled. Then they can start collecting right away.

Fraudsters who come forward would still be able to keep their regular pensions, prosecutors say...

One of those arrested last year was spotted riding in a 400-mile bike race even though he retired from the LIRR with a spinal disability.

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Editor's Note: Yup...that's fiscal responsibility right there...people who defraud the taxpayers get to keep their ill-gotten gains...super.


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