United States v. Rutigliano

Two physicians, a labor union president, and many others help Long Island Rail Road workers obtain fraudulent disability benefits. It’s an “epidemic” of fraud; nearly 80 percent of LIRR workers retire on disability—compared to 20 percent at a comparable railroad. Defendants: The scam was so blatant that regulators must have known what we were doing, and they didn’t try to stop us. Second Circuit (2015): Convictions affirmed. Defendants: Okay, but it wasn’t such an epidemic after all; most retirees’ were indeed disabled and have since had their benefits reinstated. We shouldn’t have to pay so much restitution. Second Circuit (2018): The restitution isn’t a sufficient deprivation of your liberty to permit collateral review.

Tags: 2018, Fraud, Labor Law, Restitution, Second Circuit

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