Doctor Pleads Guilty in LIRR Fraud

An orthopedist from Oyster Bay Cove faces up to 30 years in prison for his involvement in an alleged LIRR healthcare fraud scheme, according to the U.S. Attorney's Office.

Dr. Peter Ajemian, 63, pleaded guilty Thursday for his role in helping retired Long Island Railroad workers collect disability payments they did not deserve.

The U.S. Attorney's office said that between 1998-2008, Ajemian recommended that at least 734 LIRR employees on the verge of retirement receive disability benefits. At least 94 percent of the LIRR patients Ajemian saw were declared disabled.

"Beginning in or about 2002 I began seeing large numbers of LIRR employees who sought my assistance in having them declared occupationally disabled," said Ajemian in court, according to Newsday. "In truth and in fact, these employees were not in fact disabled and could have continued working in their railroad jobs, as they had without complaint right up to the time of their retirement date."

Investigators found that of over 400 studied cases, Ajemian, who practiced out of Rockville Centre, received about $2.5 million in payments from patients and insurance companies. The patients collected over $90 million in RRB disability benefit payments.

"By running the functional equivalent of a 'disability mill' and fraudulently qualifying hundreds of LIRR patients for undeserved disability benefits, Dr. Ajemian enriched himself and debased his degree," said Manhattan U.S. Attorney Preet Bharara in a statement.

Ajemian was first charged in October 2011 with 11 others after a complaint said he and two other doctors drew up fictitious disability claims worth millions of dollars.

Three LIRR retirees, Karl Brittel, Gregory Bianchini, and Brian Delgiorno, also pleaded guilty this week for participating in the scam.

Ajemian agreed to forfeit $116.5 million and pay the amount in restitution, according to the U.S. Attorney's office. He will be sentenced May 24 and faces up to 30 years in prison.