First Arrest in LIRR Disability Scandal


A man who collected hefty sums for coaching retiring LIRR employees on how to score disability benefits for often fake injuries was arrested today for his role in the rampant LIRR-disability scam.

LIRR creep Fred Kreuder, not to be confused with Nightmare on Elm Street creep Freddy Krueger, was charged with receiving a reward for official misconduct, a felony, and official misconduct, a misdemeanor.

Kreuder, a 20-year LIRR vet from Bellmore, Long Island, reportedly charged $1,000 to help an employee get a pension. According to Newsday, the first $100 was in the form of a donation to the Babe Ruth teen baseball squad he coached.

The former pension office manager for the railroad, Kreuder would steer clients to a doctor he knew would rubber-stamp the disability application. He’s hit with misconduct because he conducted such business on company time–and on an LIRR computer, no less.

Newsday says Kreuder had been flagged for lucrative pension-counseling in the past:

Kreuder was suspended without pay by the railroad Monday, according to a statement released by the LIRR. He had been suspended with pay from his $95,000-a-year job last month when his alleged actions first surfaced during a hearing Cuomo held in Old Westbury on possible pension abuses by LIRR employees.Kreuder has been working as a budget analyst – supervising one other employee – since being moved from his role as pension office manager in June 2005 when he was found to be inappropriately counseling employees on how to obtain pensions, the railroad said.

If convicted, he faces a maximum of between 1 and 4 years in prison.

The New York Times, which has owned the LIRR-Disability story, has more here.

This entry was posted in Fred Kreuder, LIRR Scandal and tagged . Bookmark the permalink.

3 Responses to First Arrest in LIRR Disability Scandal

  1. Jim Vinny Campasano says:

    Fred Kreuder was cleared of all charges in Kew Garden court today.

    The LIRR will have to reinstate him with back pay and I am sure he will be suing you.

  2. Clemuel says:

    Mr. Kreuder had all corruption charges against him dismissed by the NY State Supreme Court on Dec 11, 2009. The judge admonished the prosecution for being driven by the court of public opinion and for lying to the Grand Jury. Mr. Kreuder is being reinstated by the LIRR with full back pay and is suing the State for damages to his reputation.

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