LIRR manager arrested in disability scandal

November 17, 2008 3:30:13 PM PST
An LIRR manager was arrested Monday morning for selling inside help to railroad workers on how to take advantage of the embattled federal railroad retirement system, according to police. Authorities say 49-year-old Frederick S. Kreuder was charged with accepting payments from LIRR employees in exchange for helping them get federal disability benefits.

Police say Kreuder, the former manager of the railroad's budget and development, got paid for assisting other LIRR employees in getting benefits while he was employed by the railroad.

The 23-year veteran had been previously suspended by the LIRR amid an expanding investigation by Attorney General Andrew Cuomo.

During a recent hearing held by Attorney General Andrew Cuomo on Long Island, an email message from Kreuder was produced that gave on-the-job advice of how to get disability payments.

Authorities tell Eyewitness News that in the email, Kreuder gave advice on how to maximize his benefits, when to set up appointments with a doctor and with retirement board representatives, and how to choose the right retirement date.

LIRR President Helena Williams turned the email over to Cuomo's office, which has been investigating the roles of the "consultants" guiding nearly all retiring LIRR employees in applying for disability.

Those consultants have included former employees of the LIRR and the retirement board.

Cuomo is looking into potential abuses of disability benefits by LIRR employees.

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