LIRR Disability Coach Kreuder Cleared of Most Charges

Frederick Kreuder, charged with taking money from LIRR employees to help them get lucrative disability benefits, was cleared of most, not all, charges by a Long Island judge Friday.

Kreuder reportedly got $1,000 for his services, which the NY Times said included instructing workers “to pay a doctor $1,000 in cash, to save up his vacation time to get a larger pension, and to take physical therapy for documentation.”

In one case, Kreuder accepted a check for $100 toward the teen baseball team he coached, and did not explain where the remaining $900–to be paid once the Railroad Retirement Board green-lighted an applicant’s disability claim–went. Kreuder was a former pension manager with LIRR who then shifted to manager of budget analysis. He was suspended without pay following his arrest in November 2008.

At the time, state attorney general Andrew Cuomo’s office said in a statement:

“Today’s arrest is the first time that someone is being held accountable for the culture of entitlement and systemic abuse that plagued the LIRR and Railroad Retirement Board. Moving forward, this office will continue to pursue criminal charges against any individual who facilitated such unchecked abuse, and will continue working to correct the systemic abuse in the disability benefits program.”

The Nassau County judge saw it differently. Kreuder might’ve committed ethical violations, said the jurist, but for the most part did not commit criminal violations. The charges he was hit with pertained to not paying taxes on the money he made coaching LIRR employees about disability.

Newsday has the link, but it’s only for Cablevision/Newsday subscribers.

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

2 Responses to LIRR Disability Coach Kreuder Cleared of Most Charges

  1. Peter Hanns says:

    A happy day for Frederick Kreuder, but a sad day for America. The hard-working tax payers and LIRR riders must be burdened by Mr Kruder’s greedy legacy, while he and his “customers” enjoy their bloated retirement benefits.

    • F K says:

      Because the amount of disabilities (approx $32M/year) paid to LIRR retirees did not substantially impact the $10B in total benefits paid by the Railroad Retirement Board, the funding payroll taxes were also not raised. In other words, no extra taxes were required. However, because a retiree who had a qualifying medical condition retired earlier, a smaller LIRR pension was paid and a new emplyee making 70% was hired to take his place saving the LIRR millions each year!

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