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Former U.S. Railroad Retirement Board Representative Sentenced to 5 Years in Prison for LIRR Fraud Scheme
NEW YORK, NY – In a shocking turn of events, Marie Baran, a former employee of the United States Railroad Retirement Board, was sentenced to 5 years in prison for her role in the massive LIRR Fraud Scheme.
According to the United States Attorney for the Southern District of New York, Preet Bharara, Baran was convicted of 10 counts, including conspiracy to commit mail fraud, wire fraud, and health care fraud, conspiracy to defraud the RRB, health care fraud, mail fraud, and wire fraud. She was sentenced on August 15, 2013, before U.S. District Judge Victor Marrero.
The LIRR Fraud Scheme, which occurred between 2007 and 2011, involved Baran completing fraudulent disability applications on behalf of at least 188 LIRR clients in exchange for cash payments. The scheme resulted in the loss of over $75 million in disability benefits to which the LIRR employees were not entitled.
Baran, who retired from the RRB in 2006, began accepting cash payments from LIRR workers to complete the fraudulent disability applications. In exchange for payments of over $1000 per employee, Baran completed the applications, fabricating claims of serious physical suffering and decline, and grossly exaggerating the physical demands of the employees’ jobs.
The scheme was designed to take advantage of a unique LIRR contract that allowed employees to retire at the relatively young age of 50, with a full RRB disability payment on top of their LIRR pension. This allowed the employees to receive a disability payment from the RRB on top of their LIRR pension, regardless of age.
The RRB is an independent U.S. agency that administers benefit programs, including disability benefits, for the nation’s railroad workers and their families.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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