Insurance Fraud Project

By: Marissa Pappas

Railroad disability scheme derailed

  • Foot doc Peter Ajemian helped hundreds of Long Island Rail Road employees lie that they were seriously hurt so they could land cushy retirements larded by disability insurance payouts and ill-gotten pensions.
  • Ajemian falsely diagnosed at least 734 workers with crippling injuries so they could retire early.
  • Workers paid him $800-$1,200 to rubber-stamp fake disabilities backed by forged medical records.
  • The workers then lied to LIRR that they couldn’t stand, sit, walk or climb steps.
  • Ajemian falsely billed insurers millions of dollars for worthless X-rays, physical therapy, hospital visits and other claims involving perfectly healthy LIRR workers.
  • All told, he hauled in $2.5 million in bribes and stolen insurance money
  • At least 33 conspirators have been convicted or pleaded guilty. Dozens more have gained amnesty by admitting they lied.
  • Ajemian received 8 years in federal prison. He also must repay fully $233 million. That’s about how much stolen insurance money his diagnoses helped steal, news reports say.