Robert Ellensohn, Disability Fraud, New York 2013

Grimy Times Investigation

A former Long Island Railroad employee has pleaded guilty to disability fraud in a Manhattan federal court. Robert Ellensohn, a 59-year-old North Merrick resident, has admitted to his role in a massive scheme that defrauded the U.S. Railroad Retirement Board.

According to the U.S. Attorney for the Southern District of New York, Preet Bharara, Ellensohn and others in the LIRR Disability Fraud Scheme filed false statements with the RRB, claiming they were disabled and entitled to disability benefits. These false claims allowed LIRR employees to retire early and receive disability payments in addition to their LIRR pensions.

The scheme, which lasted from 1995 to 2011, affected hundreds of LIRR employees. More than 75% of LIRR employees who stopped working during this period began receiving RRB disability benefits, compared to only 25% of Metro-North employees. Three doctors were responsible for approximately 86% of the disability claims submitted by LIRR retirees, including Dr. Peter J. Ajemian, who pled guilty and was sentenced to eight years in prison in 2013.

Ellensohn has been charged with one count of conspiracy to commit mail fraud, wire fraud, and health care fraud, one count of conspiracy to defraud the United States and the RRB, and one count of wire fraud. He faces a maximum sentence of 45 years in prison and is scheduled to be sentenced on January 8, 2014.

The case is a result of an investigation by the Railroad Retirement Board-OIG, the FBI, and the MTA-OIG. It is the 25th defendant to plead guilty in the case, and 33 people have been charged in total.

Ellensohn’s guilty plea is a significant blow to the LIRR Disability Fraud Scheme, which has cost the U.S. government millions of dollars in disability benefits. The case highlights the need for greater oversight and accountability in the administration of disability benefits.

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