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Post by hopefalj on Jan 8, 2014 11:58:16 GMT -5
Doesn't the New York OAG have a history of doing this sort of thing? Didn't Spitzer go after securities fraud cases ahead and independent of the SEC early last decade? I know there are state securities laws, but I feel like many thought his taking charge was pretty aggressive with the SEC feeling a little left out. I could be wrong, though.
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Post by sealaw90 on Jan 8, 2014 12:22:03 GMT -5
One possible reason (other than political) for filing these cases in NY state court is the state is looking to remove them from the NYPD/NYFD pension system for violations of that system, as well as fraud against the pension fund, which may be easier to prove and/or have a direct benfit to the state budget in terms of recoopment of $$. With SSDI fraud, doesn't the money actually just end up back in the general treasury and/or judgement fund? This is just my 'off the cuff' response, so if anyone has a better idea, please post.
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Post by trekker on Jan 8, 2014 14:21:42 GMT -5
SSI comes from general treasury. If there is a repayment of overpaid Title II benefits, then it is my understanding that those funds go back to the trust fund (the disability trust fund in this case). And the issues here may be a little more complicated especially if the perpetrators would have otherwise been entitled to some benefits (e.g. early retirement) without proving disability. There may have been a greater scheme under which charges could be brought against some of the individuals but maybe not individual participants. The agency then has to figure out entitlement under other programs. Of course, this is just speculation but after years of advising and representing clients on overpayments, there are numerous factors that have to be considered. This is all speculation on my part but I remember one client who was assessed a rather small overpayment and by the time I finished with it, there was a rather significant underpayment owed to her. I am not saying I am an awesome rep, but the system does have twists and turns and eligibility may still exist even if you can show some broader scheme to defraud. And I am sure the state/city has a bigger case than SSA does given the size of most disability pensions for first responders. (And we shouldn't rush to judgment. I know many first responders and they deserve every penny they receive of their pensions -- retirement or disability.)
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Post by christina on Jan 8, 2014 14:47:29 GMT -5
totally agreed on last sentence trekker. yeah, seelaw, what you said makes sense too as they presumably have state benefits too. however, and to prove how long i've been out of law school, i thought if case had federal and state elements, it was supposed to be filed in federal court???
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Post by gary on Jan 8, 2014 14:53:24 GMT -5
It is possible we are only seeing the start of litigation in this matter. It may be the Feds will file an action in U.S. District Court later.
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Post by sealaw90 on Jan 9, 2014 8:49:47 GMT -5
It is possible we are only seeing the start of litigation in this matter. It may be the Feds will file an action in U.S. District Court later. That's what I'd like to see as well. More recent articles have indicated that they have indicted even more folks. I hope they indict the Dr.s who were in on this scheme - aparently these folks all went to the same 2 Docs...
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