George W. Myers, Theft of Public Money, Tennessee 2017

GREENEVILLE, Tenn. – George W. Myers, 59, of Telford, Tennessee, has confessed to a brazen scheme to defraud the U.S. Railroad Retirement Board (RRB) out of $362,741. Myers pleaded guilty on March 27, 2017, to one count of theft of public money, a federal charge carrying a hefty potential penalty.

The scam unfolded over a period of more than 16 years. Myers, formerly a welder for CSX Trans from 1978 to 2000, falsely claimed disability, triggering an initial application in December 2000. While that application was under review and subject to multiple denials, he received intermittent payments. Finally, in April 2007, after a prolonged legal battle, the RRB awarded him ongoing disability and Medicare coverage, retroactive to July 2004 and January 2007, respectively. This is where the deception truly took hold.

Court documents reveal Myers repeatedly signed forms acknowledging the criminal consequences of failing to report income earned while receiving benefits. He swore he was unable to work, even claiming in a 2006 report he couldn’t dress himself or perform basic outdoor chores. Yet, the Railroad Retirement Board’s Office of the Inspector General uncovered evidence that Myers was, in fact, actively working – performing demanding contracting, repair, and maintenance jobs for multiple employers between August 2004 and October 2016. He pocketed approximately $58,612 from these under-the-table gigs while simultaneously collecting full annuity payments and Medicare.

The total fraudulent take: $327,737 in annuity payments and $35,004 in health benefits. Myers knowingly lied on disability update reports, concealing his employment and falsely portraying himself as permanently unable to work. He knowingly misrepresented his physical condition to continue receiving benefits he wasn’t entitled to, effectively stealing from a system designed to support those genuinely in need.

Sentencing is scheduled for July 10, 2017, at 9:00 a.m. in U.S. District Court in Greeneville. Myers faces a maximum sentence of 10 years behind bars and a fine of up to $250,000. He will also be required to make full restitution to the Railroad Retirement Board for the stolen funds.

Assistant U.S. Attorney TJ Harker is prosecuting the case on behalf of the United States. The investigation was led by the Railroad Retirement Board, Office of the Inspector General, highlighting the agency’s commitment to rooting out fraud and protecting taxpayer dollars. This case serves as a stark reminder that attempts to cheat the system will be met with federal prosecution.

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