A massive ongoing investigation by Manhattan District Attorney Cyrus Vance’s office had, in January, led to disability fraud charges against 106 suspects – 80 of them retired New York cops and firefighters – with some accused of falsely claiming to have been traumatized by the September 11, 2001 attacks on the city.
On Tuesday, authorities rounded up 28 suspects, including 16 more retired police officers, four former firefighters, and a retired New York City Department of Corrections employee, the source told Reuters.
Disability insurance is a fraudster’s dream as more and more people access the system. From the National Bureau of Economic Research:
The share of the U.S. population receiving Social Security Disability Insurance (DI) benefits has risen rapidly over the past two decades, from 2.2 percent of adults age 25 to 64 in 1985 to 4.1 percent in 2005. While the share of adults on DI in the U.S. today is still lower than that in most other developed countries, the recent growth of the DI program nonetheless poses significant risks to the finances of the Social Security system. Over the past two decades, the share of total Social Security spending accounted for by DI has risen from 10 percent to 17 percent. In 2005, cash payments to DI beneficiaries topped $85 Billion. DI recipients are also eligible for Medicare two years after the onset of their disability, further boosting the cost of the program.
