N.Y. doctor guilty in $1 billion disability insurance scam

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A New York doctor pleaded guilty to a conspiracy charge in a $1 billion disability insurance fraud scheme involving Long Island Rail Road workers.

Dr. Peter J. Ajemian, a 63-year-old Long Island orthopedist, could be jailed for 12.5 years. He agreed to pay $116 million in restitution.

He entered the plea in federal court in Manhattan.

Others have been arrested in the past two years, and 21 have pleaded guilty.

Ajemian began in 2002 to see LIRR employees who wanted to be declared occupationally disabled, and the doctor created bogus medical history for more than 700 of them. The employees received payments from the federal railroad retirement board.

Ajemian also billed private insurance companies for unnecessary tests and hospital visits.

Sentencing is set for May 24.

Read/download Department of Justice indictments here:

Ajemian, et al S1 Indictment-1

Ajemian, et al S9 Indictment

 

 

 

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