Crime & Safety

Holtsville Man Guilty In LIRR Fraud Case

Reports say former LIRR employee could face 115 years for defrauding government, helping others do the same.

A Holtsville man has been found guilty for his role in defrauding the Long Island Rail Road's disability and pension program to the tune of hundreds of millions of dollars.

In a report by the Long Island Herald, prosecutors were able to convince a jury that Joseph Rutigliano helped hundreds of LIRR employees fill out bogus disability claims that would allow them not only to collect disability but also collect their pension due to a double-dip provision in LIRR contracts. In some cases, according to the report, employees who retired on a 20-year pension plan while also collecting phony disability were earning close to the equivalent of their active salary.

Rutigliano acted as a disability consultant for these employees, and was convicted along with another disability consultant, Marie Baran, who took cash payouts for helping the employees file fraudulent claims. Rutigliano could face up to 115 years when he's sentenced on December 13, according to the report. In an earlier report, Rutigliano also stood trial for his own disability claims. An FBI agent provided the jury with video of the Holtsville man playing golf during his time out on disability.

Also convicted in the fraud case was Dr. Peter Lesniewski, an orthopedist, who collected anywhere between $850-$1000 per case to confirm the fake claims and vouch for the claimant's disability. In addition to defrauding the government and the LIRR's retirement board, he also committed insurance fraud by collecting payouts from insurance companies for unnecessary treatment and tests. He faces up to 165 years at sentencing.  


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