Another Former NYC Police Officer Pleads Guilty to Role in Widespread Disability Fraud Scheme

Article from The New York Times:

A retired police officer, described by prosecutors as a ringleader in a huge scheme to defraud the Social Security Administration, pleaded guilty on Friday and agreed to testify against his former colleagues in return for a reduced sentence.

Prosecutors said the former officer, John Minerva, 62, of Malverne, N.Y., was one of four men who helped scores of former police officers, firefighters and others swindle disability benefits from the government by pretending to have mental illnesses. Many of the applicants claimed to be suffering from depression and panic attacks because they had worked after the terrorist attack in New York on Sept. 11, 2001.

The four men coached the applicants to feign symptoms of depression and post-tramautic stress and steered them to two doctors to create false medical histories for federal authorities. Then they collected payoffs of more than $28,000 from each of the recipients once the government started sending them checks, prosecutors said.

More than 130 people this year were arrested and charged in three indictments with taking part in the scheme. At least 91 pleaded guilty. There are 38 open cases; eight cases were dismissed.

Prosecutors said the ring was led by Raymond Lavallee, 84, a Long Island lawyer who started his career as an agent for the Federal Bureau of Investigation and now specializes in federal disability claims. He is accused of working closely with Thomas Hale, 89, of Bellmore, N.Y., a pension consultant who filled out the applications, often using the same stock phrases for dozens of people. Both Mr. Lavallee and Mr. Hale have pleaded not guilty and are awaiting trial.

Most of the police officers arrested in the scheme were recruited by a retired officer, Joseph Esposito, 64, according to court papers. Mr. Esposito pleaded guilty on Aug. 27 and agreed to cooperate with prosecutors.

At his appearance on Friday in State Supreme Court in Manhattan, Mr. Minerva, who worked as a consultant for the Detectives’ Endowment Association, signed a similar agreement with the district attorney’s office.

Mr. Minerva did not describe his role in the scheme as he pleaded guilty to a single count of first-degree grand larceny and a count of conspiracy before Justice Daniel P. FitzGerald.

Mr. Minerva promised to pay $315,000 in restitution and to testify against others charged in the case over the next two years, his lawyer, Glenn Hardy, said.

If prosecutors are satisfied with Mr. Minerva’s cooperation, he will be allowed to withdraw his guilty plea, plead guilty to a lesser charge and serve no more than three years in prison. If he fails to cooperate fully, the judge warned, he will face up to 25 years in prison.

Mr. Minerva, who remains free on bail until he is sentenced, declined to comment as he left court. Mr. Hardy said the plea agreement was “in his best interest,” noting that his client could be sentenced to probation or as little as one year in prison.

Article from The New York Times:

A retired police officer, described by prosecutors as a ringleader in a huge scheme to defraud the Social Security Administration, pleaded guilty on Friday and agreed to testify against his former colleagues in return for a reduced sentence.

Prosecutors said the former officer, John Minerva, 62, of Malverne, N.Y., was one of four men who helped scores of former police officers, firefighters and others swindle disability benefits from the government by pretending to have mental illnesses. Many of the applicants claimed to be suffering from depression and panic attacks because they had worked after the terrorist attack in New York on Sept. 11, 2001.

The four men coached the applicants to feign symptoms of depression and post-tramautic stress and steered them to two doctors to create false medical histories for federal authorities. Then they collected payoffs of more than $28,000 from each of the recipients once the government started sending them checks, prosecutors said.

More than 130 people this year were arrested and charged in three indictments with taking part in the scheme. At least 91 pleaded guilty. There are 38 open cases; eight cases were dismissed.

Prosecutors said the ring was led by Raymond Lavallee, 84, a Long Island lawyer who started his career as an agent for the Federal Bureau of Investigation and now specializes in federal disability claims. He is accused of working closely with Thomas Hale, 89, of Bellmore, N.Y., a pension consultant who filled out the applications, often using the same stock phrases for dozens of people. Both Mr. Lavallee and Mr. Hale have pleaded not guilty and are awaiting trial.

Most of the police officers arrested in the scheme were recruited by a retired officer, Joseph Esposito, 64, according to court papers. Mr. Esposito pleaded guilty on Aug. 27 and agreed to cooperate with prosecutors.

At his appearance on Friday in State Supreme Court in Manhattan, Mr. Minerva, who worked as a consultant for the Detectives’ Endowment Association, signed a similar agreement with the district attorney’s office.

Mr. Minerva did not describe his role in the scheme as he pleaded guilty to a single count of first-degree grand larceny and a count of conspiracy before Justice Daniel P. FitzGerald.

Mr. Minerva promised to pay $315,000 in restitution and to testify against others charged in the case over the next two years, his lawyer, Glenn Hardy, said.

If prosecutors are satisfied with Mr. Minerva’s cooperation, he will be allowed to withdraw his guilty plea, plead guilty to a lesser charge and serve no more than three years in prison. If he fails to cooperate fully, the judge warned, he will face up to 25 years in prison.

Mr. Minerva, who remains free on bail until he is sentenced, declined to comment as he left court. Mr. Hardy said the plea agreement was “in his best interest,” noting that his client could be sentenced to probation or as little as one year in prison.