UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK UNITED STATES OF AMERICA

. -v-

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SEALED INDICTMENT Sl 11 Cr. 1091 (VM)

PETER J. AJEMIAN, PETER J. LESNIEWSKI, MARIA RUSIN, MARIE BARAN, JOSEPH RUTIGLIANO, GREGORY NOONE, REGINA WALSH, SHARON FALLOON, GARY SATIN, STEVEN GAGLIANO, RICHARD EHRLINGER, BRIAN DELGIORNO, PHILIP PULSONETTI, GREGORY BIANCHINI, FRANKLIN PLAIA, MICHA~L STAVOLA, MICHAEL DASARO, KARL BRITTEL, KEVIN NUGENT, GARY SUPPER, and THOMAS DELALLA, Defendants.

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COUNT ONE (Conspiracy to Commit Mail Fraud, Wire Fraud and Health Care Fraud)

The Grand Jury charges: The Defendants 1. Board-certified PETER J. AJEMIAN, orthopedist the defendant, is a

who, from at least in or about 1998, retirees from the

up to and including Long Island Railroad

in or about 2011, assisted ("LIRRff) in applying

for occupational

disability Board

benefits

from the United

States Rail Road Retirement 2008 until his was employed (the

("RRB").

From in or about January

termination at a medical "Ajemian

on or about September practice

29, 2008, AJEMIAN

based in Rockville AJEMIAN previously

Centre, New York had worked

Practice").

at other Long submitted

Island-based medical

practices.

From 1998 through

2008, AJEMIAN of LIRR

reports

to the RRB, recommending benefits.

hundreds

employees

for disability 2.

MARIA RUSIN,

the defendant,

was the office manager of practices,

for PETER J. AJEMIAN, including 2000.

the defendant, Practice,

in a succession

at the Ajemian retired

starting

at least in or about benefits in or

RUSIN

and began receiving

disability

about late 2009, based upon injuries while working documentation 3. Board-certified for AJEMIAN submitted and based,

she claimed

to have sustained

in part, upon medical

by AJEMIAN. the defendant, is a

PETER J. LESNIEWSKI, orthopedist.

From at least in or about 1998 until submitted medical reports to the RRB,

in or about 2008, LESNIEWSKI recommending disability LESNIEWSKI deceased

at least approximately benefits. worked

222 LIRR workers

for

At times relevant

to this indictment, who is recently

with another

orthopedist

("Disability 4.

Doctor-3"). the defendant, worked as an RRB

MARIE BARAN,

district

office manager,

based in Westbury, 2006.
2

New York, until her

retirement

in or about December

No later than upon her

retirement,

BARAN began working

as a "facilitator" in planning

who purported

to advise and assist LIRR workers disability to the RRB. 5. conductor JOSEPH RUTIGLIANO, and,in preparing

for post-retirement for submission

disability

applications

the defendant,

was a former LIRR RRB

and union president disability RUTIGLIANO

who applied

for and received

occupational retirement, BARAN,

benefits

after his retirement. as a "facilitator,"

After his like MARIE

also worked

the defendant. 6. GREGORY NOONE, REGINA WALSH, EHRLINGER, FRANKLIN SHARON FALLOON, BRIAN DELGIORNO, GARY PHILIP

SATIN,

STEVEN GAGLIANO, GREGORY

RICHARD

PULSONETTI, MICHAEL

BIANCHINI,

PLAIA, MICHAEL

STAVOLA, and who

DASARO,

KARL BRITTEL,

KEVIN NUGENT,

GARY SUPPER,

THOMAS DELALLA, have retired applied

the defendants,

are all former LIRR employees After their retirement, benefits. Disability Fraud

on LIRR pensions.

they each

for and received Overview 7.

RRB disability

Of The Premeditated

The defendants

and their co-conspirators who were ready to retire occupationally

committed falsely' in

a fraud in which LIRR workers claimed to be disabled,

including

disabled,

order to receive Specifically,

extra benefits

to which they were not entitled. to retire as early

LIRR employees,

who were eligible

as age 50 with an LIRR pension, pension combined with a separate

sought to supplement annuity which,

their LIRR when level

RRB disability

with their LIRR pension,
3

resulted

in a total income

that often approximated

their pre-retirement, with the knowing

working

income.

This fraud was perpetrated involvement primarily

and intentional and - who

of three doctors the defendants,

- PETER J. AJEMIAN

PETER J. LESNIEWSKI, falsely declared

and Disability

Doctor-3 when in

retiring

LIRR workers

to be disabled

truth and in fact the workers disability various doctors claimed

were not disabled.

Typically, suffered

these from

that their LIRR patients

musculoskeletal

impairments,

which can involve

claims of

soft tissue injury that are more difficult criteria than are other impairments,

to confirm by objective

and are often diagnosed reported by the who served

Clinically, patient.

based upon pain as subjectively

Thi's fraud was also aided by "facilitators" between the retiring workers

as liaisons doctors.

and participating millions of dollars loss to

As a result,

the doctors

received

from patients

and insurance

companies,

and the foreseeable

the RRB disability

funds, if the fraudulent

claims were paid out

in full, would exceed approximately 8. participants

$1 billion. took some or

in the fraud typically

all of the following a. application,

steps, among others: of filing an RRB,disability doctors and -

In anticipation LIRR employees

saw one of three disability

PETER J. AJEMIAN Disability

and PETER J. LESNIEWKSI, who collectively

the defendants,

Doctor-3,

accounted

for approximately the times

86% of the LIRR disability relevant

applications

filed during

to this Indictment.
4

b. employees

The disability

doctors

prescribed tests,

for the LIRR including at

a series of unnecessary

medical

times rounds of x-rays, as purported treatments,

scans and nerve conduction including files. generally physical

tests, as well in order to

therapy,

pad the patients' c. between medical

medical

The LIRR employees

paid the doctors

approximately assessment

$800 and $1200, often in cash, to ,prepare a or both, for submission

and illness narrative,

to the RRB. d. exaggerated in which The disability medical doctors then prepared fabricated or

assessments

and illness narratives,

or both,

they recommended

a set of restrictions the LIRR employees

that, if bona from continuing in

fide, would have prevented their occupations. e. receiving Sometime

after retiring

in anticipation prepared

of disability

an LIRR pension, that falsely

the LIRR employees claimed an inability

applications though

to work, even

the employees

were performing

their jobs up until the time

they retired. f. so-called RUTIGLIANO, The LIRR employees paid one of a small group of MARIE BARAN and JOSEPH process

"facilitators,"

including

the defendants,

to assist with the disability with the doctors' applications offices, of LIRR

by, among other things, coordinating employees,

working

the disability and either

benefit

filling out the applications
5

or coaching

the

LIRR employees

to fill out their disability the'likelihood benefits. facilitators,

applications

in such a

way as to maximize receive disability g.

that such employees

would

The doctors,

and other participants were not, in fact, to perform the employees their LIRR In

did all of this knowing disabled

that the LIRR employees

- that is, they were not, in fact, unable of medical impairmentsi rather,

their jobs because

were simply planning pension benefits

to retire and wished

to supplement

with RRB occupational facilitators,

disability

payments.

fact, the doctors,

and other participants working

knew full full-time

well that the LIRR employees,

who were generally overtime), themselves

(and, indeed, who were often working the date on which they would declare this scheduled retirement assistance LESNIEWSKI,

had pre-planned disabled, and that

date was contemporaneous PETER J. AJEMIAN,

with their projected - with the

date.

the defendant

of MARIA RUSIN, the defendant, exaggerated

the defendant

- and PETER J. unnecessary to conceal medical the fact

and others ordered medical narratives

tests and wrote

that the LIRR employees applications 9. benefits, private

were paying

them to prepare

disability

when the employees Before applying

were not in fact disabled. for RRB occupational applied for various disability forms of

certain

LIRR employees insurance.

disability polices

Benefits

under those private were later

insurance determined

were triggered

if the employees

to be disabled.

After obtaining 6

RRB disability

benefits, insurance

these individuals polices. 10.

then made claims

on these private

The doctors participating disability

in the fraud profited narratives and medical from other health

by

charging

fees for preparing

assessment

forms, by obtaining

new patient

referrals

LIRR employees insurers

and facilitators,

and by billing

private

for unnecessary

tests and visits.

For example,

from in

or about September such revenue

2004 to in or about September

2008, the total

for each of PETER J. AJEMIAN was at least hundreds financial

and PETER J. LESNIEWSKI, of dollars. to

the defendants,

of thousands

This revenue provided participate

motivation

for the doctors

in the fraud.

The Defendants' Exploitation Of The Overlap Between The LIRR Pension And The Railroad Retirement Board Disability Programs 11. executive 1930s. The RRB is an independent of the Federal agency within the in the

branch

Government

that was created retirement, benefits,

The RRB administers programs,

comprehensive disability

survivor, for the

and benefit nation's

including

railroad

workers

and their families, Insurance

under the Railroad Acts. LIRR and in the RRB are

Retirement employees pension

and Railroad participate

Unemployment

in the RRB disability

program

program.

The RRB disability

and pension

programs

primarily employers

funded by federal employment and railroad employees

taxes paid by railroad and by certain federal

nationwide

income taxes paid by recipients

of RRB pensions.
7

12. the minimum

Retired

LIRR workers

can receive

two pensions,

but

eligibility

age is different

for the two programs. paid by the LIRR. at the

First, LIRR workers LIRR workers

are eligible

for a pension

hired before

1988 may draw the LIRR pension

age of 50, provided Second, LIRR workers

they have been employed are eligible

for at least 20 years. paid by the RRB, at the

for a pension

but most workers age of 65. payments

only become

eligible

for that full pension receives

Thus, a 65-year old LIRR retiree

two pension 50-year

- one from LIRR and one from RRB. receive only an LIRR pension,

But qualifying and generally RRB pension.

old retirees

must wait

15 years before 13. qualified

receiving

their full second, may apply

An LIRR employee

for - and receive

if

- an RRB disability

award after he or she has retired the fact that the employee an LIRR worker to receive

and stopped working, collects

notwithstanding

an LIRR pension.

This enables

both the LIRR pension

as well as RRB payments to receive

prior to the time he For example, only for an

or she would be eligible an LIRR worker LIRR pension, birthday drawing

an RRB pension.

who retired at age 50 would be eligible

and would have to wait 15 years until her 65th collecting a supplemental RRB pension, thereby if

to begin

a substantially

lower income upon retirement. disabled

However,

that worker was deemed occupationally

after she retired both

at the age of 50, then she could immediately her LIRR pension would receive and RRB disability payments.

begin collecting That retiree

- who

both her LIRR pension,
8

as well as RRB disability

payments

- could then draw roughly

the base salary earned during

her career. 14. The RRB provides two types of disability annuities. similar

First, a total disability

annuity

is based upon guidelines in other words, it

to those for Social Security requires a showing

disability;

of a permanent

and total disability. disability" physical annuities or mental

Second, for

the RRB provides railroad workers

for "occupational who have permanent

impairments jobs, other

that prevent regardless work.

them from performing

their specific

railroad

of whether
§

they might be capable 220.10(a).

of performing worker

See 20 C.F.R.

A railroad

is eligible

to apply for an occupational 10 years of employment, employment. 15. has required disability, C.F.R.
§

disability

at age 60 if he or she has of

or at any age with at least 20 years

At all times relevant medical findings

to this Indictment,

the RRB

to support a claim of occupational tests and reports. these medical See 20 findings must

including

"objective"

220.46.

Among other

things,

be complete determination legitimate effects

and detailed

enough

to allow the RRB to make a disability is a and limiting in

about whether

a claimant's "(1)

impairment,

including

[t]he nature

of the claimant's (2) the probable and

impairment(s) duration

for any period

question;

of the claimant's residual functional Id. capacity A

impairment(s);

(3) the claimant's physical and mental
9

to c;l0 work-related

activities."

"functional

capacity

test" is defined measures

as "one of a number maximal

of tests work

which provide ability

objective

of a claimant's capacity

and includes

functional

evaluations

which provide overall physically crouching,
§

·a systematic strength, demanding stooping

comprehensive

assessment

of a claimant's to perform lifting, 20

mobility,

endurance

and capacity walking,

tasks, such as standing, or bending, 16. climbing

or kneeling."

c. F.R.

220.11. take of

Pursuant

to federal

regulations, concerning

the RRB must

into account

an applicant's

statement

the intensity

pain that he or she is suffering physician's regulations symptoms medical descriptions require of those

as well as the treating symptoms. While applicable that subjective demonstrable

that the RRB determine

such as pain be consistent evidence, the regulations

with objectively

provide:

Since symptoms sometimes suggest a greater severity of impairment than can be shown by objective medical evidence alone, the Board will carefully consider any other information the claimant may submit about his or her symptoms. The information that the claimant, the claimant's treating or examining physician or psychologist, or other persons provide about the claimant's pain or other symptoms (e.g., what may precipitate or aggravate the claimant's symptoms, what medications, treatments or other methods he or she uses to alleviate them, and how the symptoms may affect the claimant's pattern of daily living) is also an important indicator of the intensity and persistence of the claimant's symptoms. Because symptoms, such as pain, are subjective and difficult to quantify, any symptom-related functional limitations and restrictions which the claimant, his or her treating or examining physician or 10

psychologist, or other persons report, which can reasonably be accepted as consistent with the objective medical evidence and other evidence, will be taken into account See 20 C.F.R. 17.
§

220.114 (c) (3). further provide that, if the with

The regulations

,treating physician other medical consultants,

gives an opinion including

that is inconsistent

evidence,

opinions'obtained

by RRB medical based on the

the RRB must resolve

those inconsistencies

all the evidence RRB must supported

in the case record.

In doing so, however, source's findings

Ugive some extra weight opinion(s)

to the treating the medical

which interprets

about

the nature and severity
§

of the impairment(s)./1 system

20 C.F.R. to abuse

220.112(d).

Thus, the regulatory and treating physicians

is vulnerable

by employees symptoms, weight. 18.

who falsify and exaggerate extra

as the RRB is required

to give their statements

Typically, Assessment

a treating

physician

completes

and signs

an RRH Medical (hereinafter Assessment

filing, known as a G-250 form The Medical medical

referred

to as a uMedical Assessment/l). view of objective medical

sets forth the doctor's findings,

tests, medical 19. every annuitant Employee's

and required

restrictions. process, of

As a critical

part of the RRB disability

also must file an Application known as a Form AA-ld

for Determination (hereinafter

Disability,

referred must

to as a uDisability

Application./I) 11

On the form, annuitants

describe

in detail

the limitations

resulting

from their impairment of their Application

and state when they could no longer work because conditions. reminds The signature page of the Disability

an applicant

that he or she must answer

these questions

truthfully,

as follows:

I know that if I make a false or fraudulent statement in order to receive benefits from the RRB or if I fail to disclose earnings or report employment of any kind to the RRB, I am committing a crime which is punishable under Federal law. At times, annuitants file a Continuing (hereinafter which receiving disability payments are directed to

Disability

Update

Report,

known ~s a form G-254A in

referred

to as a "Disabiliti under penalty condition

Recertification"), of prosecution,

they have to certify,

certain

facts about their physical 20. claims

and employment. to this Indictment, for disability RRB

At all times relevant reviewing

examiners a.

applications

generally:

assumed

that the doctor who provided who submitted

a Medical

Assessment Application condition;

and the applicant were telling

a Disability medical

the truth about the applicant's

b. as required unable

relied on the applicant in an RRB Disability

when the applicant

stated,

Application,

that he or she was

to continue

working because

of his or her medical

condition; c. relied on the treating 12 physician's statements about

the medical opinion

condition

of the applicant, and environmental condition; and

including

the doctor's necessitated

of exertional

restrictions

by the patient's d. requirements, applicants' occupational 21. requested examiner

medical

relied on applicants'

descriptions

of their job whether the their

set out in a Form G-251, to determine conditions made them unable

medical duties.

to fulfill

Prior to September

2008, the RRB generally consultant or medical in the RRB

review by an outside

medical

only when the patient's not as a method

application

was incomplete Because

some manner, examiners contracted believed evidence

for detecting

fraud.

were not medical consultant

experts,

they could request records

that a

review medical

if the examiner the disability medical

that he or she could not interpret without expert advice.

The Pattern Of Disability Claims At The Long Island Railroad 22. occupational workers In fiscal year 2007, LIRR workers disability benefits commuter applied for than

at a rate 12 times higher railroads,

from comparable

such as Metro North

Railroad. 23. employees benefits old. Between 2004 and 2008, approximately and began receiving 61% of LIRR some type of

who stopped working

from the RRB were between at Metro North, 13

the ages of 50 and 55 years only approximately 7% of the

By contrast,

employees

who stopped working

and started receiving

RRB benefits

were between receiving early

the ages of 50 and 55. disability

Over 75% of LIRR workers first retired while in their work, -

RRB occupational

fifties.

Given the way that the LIRR and RRB pensions award, these retirees

as described

above, absent a disability

who could retire as early as age 50 under a unique would until generally

LIRR contract

have had to rely only upon their LIRR pensions

the age of 65. 24. a. For the period 2005 to 2009: 91% of LIRR employees listed as

over approximately impairments diagnosis,

musculoskeletal their primary employees railroad;

(including arthritis/rheumatism) with approximately tri-state 45% of

compared

at Metro-North, and b.

a comparable

commuter

only approximately criteria

38% of the LIRR annuitants disability 73% of all RRB

met

the medical

for a total and permanent to approximately

determination, annuitants. 25.

in comparison

For the period August doctors

2004 through August

2008,

only three New York-area LESNIEWSKI, treating

- PETER J. AJEMIAN Doctor-3

and PETER J. - were the

the defendants,

and Disability

physicians

for more than 86% of the RRB disability younger than 65. In

applications particular, physician

filed by LIRR employees for this time period,

AJEMIAN

was the treating was the treating

for approximately

47%, LESNIEWSKI 14

physician treating

for approximately physician

13%, and Disability 25%. worked

Doctor-3

was the

for approximately Doctor-3

As set forth above, together at times

LESNIEWSKI relevant

and Disability

to this Indictment. 26. For the period between in or about 1997 and in or declared disabled

about 2008, PETER J. AJEMIAN, over 94% of the LIRR employees eligible

the defendant,

he saw as patients

who were for the same disabled

to retire with an LIRR pension. PETER J. LESNIEWSKI,

Similarly,

time period,

the defendant,

declared who were

over 98% of the LIRR employees eligible

he saw as patients

to retire with an LIRR pension. Statutory 27. Allegations

From at least in or about 1998, up to and including District of New York and MARIA RUSIN, WALSH, EHRLINGER, FRANKLIN KEVIN and and

in or about 2011, in the Southern elsewhere, PETER J. AJEMIAN,

PETER J. LESNIEWSKI, GREGORY

MARIE BARAN,

JOSEPH RUTIGLIANO,

NOONE, REGINA RICHARD

SHARON FALLOON, BRIAN DELGIORNO, PLAIA, MICHAEL NUGENT,

GARY SATIN, STEVEN GAGLIANO, PHILIP PULSONETTI, MICHAEL GREGORY

BIANCHINI,

STAVOLA,

DASARO,

KARL BRITTEL,

GARY SUPPER, and THOMAS DELALLA, and unknown, combined,

the defendants,

others known agreed

conspired,

confederated

together

and with each other, to violate 1341, 1343 and 1347.

Title 18, United

States Code, Sections 28.

It was a part and an object of the conspiracy PETER J. LESNIEWSKI, 15

that

PETER J. AJEMIAN,

MARIA RUSIN, MARIE BARAN,

JOSEPH

RUTIGLIANO,

GREGORY NOONE, REGINA WALSH, RICHARD EHRLINGER, FRANKLIN

SHARON FALLOON, BRIAN DELGIORNO, PLAIA, MICHAEL

GARY SATIN, PHILIP

STEVEN GAGLIANO,

PULSONETTI, MICHAEL

GREGORY BIANCHINI, KARL BRITTEL,

STAVOLA,

DASARO,

KEVIN NUGENT, GARY SUPPER,

and THOMAS DELALLA, having devised

the defendants,

and others known and unknown, to

and intending

to devise a scheme and artifice

defraud,

and for obtaining pretenses,

money and property representationq

by means of false for the so to

and fraudulent purpose

and promises,

of executing

such scheme and artifice

and attempting

do, would and did place in a post office and authorized for mail matter, a matter

depository by

and thing to be sent and delivered and cause to be

the Postal Service, deposited a matter

and would and did deposit

and thing to be sent and delivered carrier,

by a private

and commercial receive

interstate

and would and did take and

therefrom,

a matter and thing, and would and did knowingly by mail and such carrier according to the to be

cause to be delivered direction delivered thing, thereon,

and at the place at which

it is directed a matter

by the person

to whom it is addressed,

and 1341.

in violation 29.

of Title 18, United

States Code, Section

It was a further part and object of the conspiracy PETER J. LESNIEWSKI, GREGORY NOONE, MARIA RUSIN, MARIE SHARON BRIAN PLAIA,

that PETER J. AJEMIAN, BARAN,

JOSEPH RUTIGLIANO, GARY SATIN, PHILIP

REGINA WALSH,

FALLOON,

STEVEN GAGLIANO, GREGORY

RICHARD

EHRLINGER, FRANKLIN

DELGIORNO,

PULSONETTI,

BIANCHINI,

16

MICHAEL SUPPER, unknown, devise

STAVOLA,

MICHAEL

DASARO,

KARL BRITTEL,

KEVIN NUGENT,

GARY

and THOMAS DELALLA, willfully

the defendants,

and others known and and intending money to

and knowingly,

having devised

a scheme and artifice by means

to defraud

and for obtaining pretenses,

and property

of false and fraudulent

representations, be transmitted communication signals,

and promises,

would and did transmit

and cause to

by means of wire, radio, and televison in interstate and foreign commerce, writings, signs, such Code,

pictures,

and sounds for the purpose in violation

of executing

scheme and artifice, Section 1343. 30.

of Title 18, United

States

It was a further part and object of the conspiracy PETER J. LESNIEWSKI, GREGORY NOONE, MARIA RUSIN, MARIE SHARON BRIAN PLAIA, GARY

that PETER J. AJEMIAN, BARAN,

JOSEPH RUTIGLIANO, GARY SATIN, PHILIP

REGINA WALSH,

FALLOON,

STEVEN GAGLIANO, GREGORY

RICHARD

EHRLINGER, FRANKLIN

DELGIORNO, MICHAEL

PULSONETTI, MICHAEL

BIANCHINI,

STAVOLA,

DASARO,

KARL BRITTEL,

KEVIN NUGENT,

SUPPER,and unknown, attempt benefit

THOMAS

DELALLA,

the defendants,

and others known and and care

knowingly to execute, program

and willfully,

would and did execute,

a scheme and artifice

to defraud a health

and to obtain, by means of false and fraudulent and promises, any of the money and

pretenses, property

representations,

owned by, and under the custody program, in connection

and control of, a health of and

care benefit

with the delivery

17

payment

for health

care benefits,

items, and services,

in

violation

of Title 18, united States Code, Section (Title 18, United States Code, Section COUNT TWO (Conspiracy to Defraud the United charges:

1347. 1349.)

States RRB)

The Grand Jury further 31. 26 are repeated 32. The allegations and realleged

contained

in Paragraphs

1 through

as if fully stated herein.

From at least in or about 1998, up to and including District of New York and MARIA RUSIN,

in or about 2011, in the Southern elsewhere, PETER J. AJEMIAN,

PETER J. LESNIEWSKI, GREGORY NOONE,

MARIE BARAN, JOSEPH RUTIGLIANO, SHARON FALLOON,

REGINA WALSH, EHRLINGER, FRANKLIN KEVIN and and

GARY SATIN, STEVEN GAGLIANO, PHILIP PULSONETTI, MICHAEL GREGORY

RICHARD

BRIAN DELGIORNO, PLAIA, MICHAEL NUGENT, others agreed

BIANCHINI,

STAVOLA,

DASARO,

KARL BRITTEL,

GARY SUPPER,

and THOMAS DELALLA, combined,

the defendants,

known and unknown, together

conspired,

confederated the United

and with each other to defraud to wit, the RRB. Overt Acts

States

and an agency

thereof,

33. illegal object

In furtherance thereof,

of the conspiracy

and to effect

the

PETER J. AJEMIAN,

PETER J. LESNIEWSKI, GREGORY NOONE, RICHARD REGINA

MARIA RUSIN, MARIE BARAN, JOSEPH RUTIGLIANO, WALSH, SHARON FALLOON,

GARY SATIN, STEVEN GAGLIANO, 18

EHRLINGER, FRANKLIN

BRIAN DELGIORNO,

PHILIP

PULSONETTI,

GREGORY

BIANCHINI,

PLAIA, MICHAEL

STAVOLA,

MICHAEL

DASARO,

KARL BRITTEL, and

KEVIN NUGENT,

GARY SUPPER,

and THOMAS DELALLA, the following

the. defendants,

their co-conspirators, others, in the Southern a. signed

committed District

overt acts, among

of New York and elsewhere: 6, 1998, Disability to RICHARD Doctor-3

On or about November assessment relating

a medical b.

EHRLINGER. EHRLINGER

On or about November

9, 1998, RICHARD benefits.

signed

an application c.

for RRB disability

On or about July I, 2005, PETER J. AJEMIAN GARY SATIN.

signed a

narrative

regarding d.

On or about July 25, 2005, GARY SATIN signed an for RRB disability benefits. 5, 2006, PETER J. AJEMIAN

application e.

On or about September regarding

signed a narrative f. an application g. narrative

REGINA WALSH. 25, 2007, REGINA WALSH benefits. signed a signed

On or about January for RRB disability

On or about June I, 2007, PETER J. AJEMIAN GREGORY NOONE. 8, 2007, GREGORY

regarding h.

On or about August for RRB disability

NOONE signed an

application i. signed

benefits. I, 2007, PETER J. AJEMIAN FALLOON. 14, 2007, SHARON FALLOON benefits.

On or about October regarding SHARON

a narrative j.

On or about November

signed an application

for RRB disability 19

k.

On or about July 29, 2008, MARIE BARAN

instructed

an LIRR employee

to contact MARIA RUSIN and obtain an appointment

with PETER J. AJEMIAN. 1. caused On or about March 3, 2011, REGINA WALSH mailed in Manhattan, and

to be mailed

to the RRB's office

New York, a

Disability

Recertification. m. On or about March 5, 2011, SHARON FALLOON mailed New

and caused York,

to be mailed

to the RRB's office

in Manhattan,

a Disability n.

Recertification. 7, 2011, GARY SATIN mailed in Manhattan, and

On or about March

caused

to be mailed

to the RRB's office

New York, a

Disability

Recertification. o. On or about March 11, 2011, GREGORY NOONE mailed New

and caused York,

to be mailed

to the RRB's office

in Manhattan,

a Disability p.

Recertification. 24, 2011, RICHARD EHRLINGER in Manhattan,

On or about March

mailed

and caused to be mailed

to the RRB's office

New York, a Disability q.

Recertification. 28, 2011, in Manhattan, New York, District

On or about April before

GARY SATIN testified of New York. r. signed

a Grand Jury for the Southern

On or about September assessment relating

3,2008,

PETER J. AJEMIAN

a medical s.

to BRIAN DELGIORNO. 23, 2008, BRIAN DELGIORNO benefits.

On or about September

signed an application

for RRB disability 20

t.

On or about March 4, 2011, BRIAN DELGIORNO to the RRB's office in Manhattan,

mailed New

and caused to be mailed York, a Disability u. medical

Recertification. signed a

On or about May 1, 2008, PETER J. AJEMIAN relating to PHILIP PULSONETTI.

assessment v.

On or about June 23, 2008, PHILIP PULSONETTI for RRB disability On or about March to be mailed benefits. 12, 2011, PHILIP PULSONETTI

signed

an application w. mailed

and caused

to the RRB's office

in Manhattan,

New York, a Disability

Recertification. 7, 2003, PETER J. AJEMIAN BIANCHINI. BIANCHINI signed

x.
a medical

On or about August relating

assessment y.

to GREGORY

On or about September

25, 2003, GREGORY benefits.

signed an application

for RRB disability

z.
mailed

On or about March to be mailed

12, 2011, GREGORY

BIANCHINI in Manhattan,

and caused

to the RRB's office

New York, a Disability aa. medical

Recertification. signed a

On or about July 7, 2006, PETER J. AJEMIAN relating to FRANKLIN PLAIA. PLAIA

assessment bb.

On or about July 20, 2007, FRANKLIN benefits. 5, 2011, FRANKLIN

signed an

application

for RRB disability

cc. and caused

On or about March

PLAIA mailed New

to be mailed

to the RRB's office

in Manhattan,

York, a Disability dd.

Recertification. Doctor-3

On or about May 15, 2008, Disability 21

signed

a narrative ee.

regarding

MICHAEL

STAVOLA. STAVOLA signed

On or about June 27, 2008, MICHAEL for RRB disability benefits.

an application ff.

On or about March 21, 2011, MICHAEL to the RRB's office

STAVOLA

mailed New

and caused to be mailed York, a Disability gg. signed

in Manhattan,

Recertification. 10, 2006, PETER J. AJEMIAN to MICHAEL DASARO. DASARO signed

On or about November assessment relating

a medical hh.

On or about January for RRB disability

8, 2007, MICHAEL benefits .

an application . ii.

On or about March 7, 2011, MICHAEL to the RRB's office

DASARO mailed New

and caused to be mailed York, a Disability jj. signed

in Manhattan,

Recertification. 4, 2003, PETER J. AJEMIAN to KARL BRITTEL. 12, 2003, KARL BRITTEL signed

On or about December assessment relating

a medical kk.

On or about December for RRB disability

an application 11. caused

benefits. and

On or about March 30, 2011, KARL BRITTEL mailed to the RRB's office in Manhattan,

to be mailed

New York, a

Disability

Recertification. mm. On or about November assessment relating 1, 2006, PETER J. AJEMIAN to KEVIN NUGENT. 18, 2006, KEVIN NUGENT signed·

signed a medical nn. an application
00.

On or about December for RRB disability

benefits. and

On or about March 21, 2011, KEVIN NUGENT mailed 22

caused

to be mailed

to the RRB's office in Manhattan,

New York, a

Disability

Recertification. pp. On or about December assessment relating 20, 2006, PETER J. LESNIEWSKI to GARY SUPPER. 29, 2006, GARY SUPPER signed

signed a medical qq. an application rr. provided RRB. ss. an application tt.

On or about December for RRB disability

benefits. 2008, PETER J. AJEMIAN to THOMAS DELALLA to the

In or about December documentation

medical

relating

On or about December for RRB disability On or about March

9, 2008, THOMAS

DELALLA

signed

benefits. 15, 2011, THOMAS DELALLA mailed New

and caused to be mailed York, a Disability

to the RRB's office in Manhattan,

Recertification. States Code, Section 371.)

(Title 18, United

COUNT THREE (False Claims) The Grand Jury further charges: 34. 26 are repeated 35. The allegations and realleged contained in Paragraphs 1 through

as if fully stated herein.

From at least in or about 1998, up to and including District of New York and MARIA RUSIN,

in or about 2011, in the Southern elsewhere, PETER J. AJEMIAN,

PETER J. LESNIEWSKI,

23

MARIE BARAN,

JOSEPH RUTIGLIANO, GARY SATIN, PHILIP

GREGORY NOONE,

REGINA

WALSH, EHRLINGER, FRANKLIN KEVIN made and and

SHARON FALLOON, BRIAN DELGIORNO, PLAIA, MICHAEL NUGENT,

STEVEN GAGLIANO, GREGORY

RICHARD

PULSONETTI, MICHAEL

BIANCHINI,

STAVOLA,

DASARO,

KARL BRITTEL,

GARY SUPPER, to a person

and THOMAS DELALLA, and officer

the defendants,

presented

in the civil, military, and to a department States

naval service thereof,

of the United

States,

and agency

a claim upon and against the United and agency thereof, knowing

and a

department fictitious,

such claim to be false, defrauded the

and fraudulent,

to wit, the defendants statements

RRB by making disability

false and fraudulent

in order to obtain

benefits. States Code, Sections 287 and 2.)

(Title 18, United

COUNT FOUR (Health Care Fraud) The Grand Jury 36. 26 are repeated 37. further charges: contained in Paragraphs 1 through

The allegations and realleged

as if fully stated

herein.

From at least in or about 1998, up to and including District bf New York and MARIA RUSIN, WALSH, EHRLINGER,

in or about 2011, in the Southern elsewhere, PETER J. AJEMIAN,

PETER J. LESNIEWS~I, GREGORY NOONE,

MARIE BARAN,

JOSEPH RUTIGLIANO, GARY SATIN,

REGINA

SHARON FALLOON,

STEVEN GAGLIANO,

RICHARD

24

BRIAN DELGIORNO ( PHILIP PLAIA ( MICHAEL STAVOLA~

PULSONETTI(

GREGORY

BIANCHINI ( FRANKLIN KEVIN

MICHAEL DASARO ( KARL BRITTEL(

NUGENT ( GARY SUPPER( and willfully artifice

and THOMAS DELALLA( and attempted

the defendants ( knowingly a scheme and and obtain( by

executed

to execute programs

to defraud

health

care benefit

means of false and fraudulent promises ( money and property control of, health d~livery services,

pretenses ( representations ( and owned by, and under the custody and in connection with the

care benefit programs,

of and payment

for health care benefits, fraudulently carriers

items and and caused medical

to wit, the defendants private insurance and tests. States

billed,

to be billed, treatments,

for unnecessary

services,

(Title 18, United

Code, Sections

1347 and 2.)

COUNTS FIVE THOUGH

EIGHTEEN

(Mail Fraud) The Grand Jury further 38. 26 are repeated 39. District having The allegations and realleged charges: in Paragraphs 1 through

contained

as if fully stated herein. in the Southern defendants, to

On or about the dates listed below, the following

of New York and elsewhere, and intending

devised

to devise a scheme and artifice by means

defraud,

and for obtaining pretenses,

money and property representations

of false for the

and fraudulent

and promises,

25

purpose

of executing

such scheme and artifice

and attempting

so to

do, placed matter, Service,

in a post office and authorized

depository

for mail

a matter

and thing to be sent and delivered and caused to be deposited

by the· Postal and

and deposited

a matter

thing to be sent and delivered interstate thing, carrier which carrier,

by a private

and commercial a matter and

and took and received

therefrom,

and knowingly according

caused to be delivered thereon,

by mail and such and at the place at to whom it is listed below for

to the direction

it is directed a matter

to be delivered

by the person

addressed,

and thing, to wit, the defendant on the approximate the fraudulent

as \\Mailing Defendant," the purpose of executing

dates listed below,

scheme and in furtherance listed below as \\Charged a Disability New York: Approx. Date of G-254A mailing March 12, 2011

of a conspiracy Defendants,"

with the other defendants

mailed

and caused to be mailed

Recertification, COUNT

to the RRB's offices Defendants

in Manhattan,

Charged

Mailing Defendant GREGORY NOONE

FIVE

GREGORY NOONE PETER J. AJEMIAN MARIA RUSIN MARIE BARAN REGINA WALSH PETER J. AJEMIAN MARIA RUSIN MARIE BARAN

SIX

REGINA WALSH

March

7, 2011

26

SEVEN

SHARON FALLOON PETER J. AJEMIAN MARIA RUSIN MARIE BARAN GARY PETER MARIA MARIE SATIN J. AJEMIAN RUSIN BARAN

SHARON

FALLOON

March

16, 2011

EIGHT

GARY SATIN

March

7, 2011

NINE

RICHARD EHRLINGER PETER J. LESNIEWSKI JOSEPH RUTIGLIANO BRIAN DELGIORNO PETER J. AJEMIAN MARIA RUSIN PHILIP PULSONETTI PETER J. AJEMIAN MARIA RUSIN MARIE BARAN GREGORY BIANCHINI PETER J. AJEMIAN MARIA RUSIN JOSEPH RUTIGLIANO FRANKLIN PLAIA PETER J. AJEMIAN MARIA RUSIN MICHAEL STAVOLA MARIE BARAN MICHAEL DASARO PETER J. AJEMIAN MARIA RUSIN KARL BRITTEL PETER J. AJEMIAN MARIA RUSIN JOSEPH RUTIGLIANO KEVIN NUGENT PETER J. AJEMIAN MARIA RUSIN

RICHARD EHRLINGER BRIAN DELGIORNO

March

24, 2011

TEN

March 4, 2011

ELEVEN

PHILIP PULSONETTI

March

12, 2011

TWELVE

GREGORY BIANCHINI

March

12, 2011

THIRTEEN

FRANKLIN

PLAIA

March

5, 2011

FOURTEEN FIFTEEN

MICHAEL MICHAEL

STAVOLA DASARO

March March

21, 2011 7, 2011

SIXTEEN

KARL BRITTEL

March 30, 2011

SEVENTEEN

KEVIN NUGENT

March

21, 2011

27

EIGHTEEN

THOMAS DELALLA PETER J. AJEMIAN MARIA RUSIN

THOMAS

DELALLA

·March 15, 2011

(Title 18, United

States Code, Sections

1341 and 2.)

COUNT NINETEEN (Wire Fraud) The Grand Jury further charges: 40. 26 are repeated 41. The allegations and realleged contained in Paragraphs 1 through

as if fully stated herein.

From at least in or about 1998, up to and including District of New York and MARIA RUSIN, WALSH, EHRLINGER, FRANKLIN KEVIN willfully

in or about 2011, in the Southern elsewhere, PETER J. AJEMIAN,

PETER J. LESNIEWSKI, GREGORY

MARIE BARAN,

JOSEPH RUTIGLIANO,

NOONE, REGINA RICHARD

SHARON FALLOON, BRIAN DELGIORNO, PLAIA, MICHAEL NUGENT,

GARY SATIN, STEVEN GAGLIANO, PHILIP STAVOLA, PULSONETTI, MICHAEL GREGORY

BIANCHINI,

DASARO,

KARL BRITTEL,

GARY SUPPER, having

and THOMAS DELALLA,

the defendants, to devise

and knowingly, artifice

devised and intending and for obtaining pretenses,

a scheme and by means

to defraud,

money and property

of false and fraudulent did transmit

representations, by means

and promises, of wire, radio, commerce, of

and cause to be transmitted communication signals,

and television writings, executing

in interstate

and foreign

signs,

pictures,

and sounds for the purpose to wit, the defendants

such scheme and artifice, 28

participated fraudulent

in a scheme to defraud statements

the RRB by making disability caused

false and

in order to obtain

benefits,

andin the course of executing transmit by wire disability (Title 18, united

such scheme,

the RRB to

payments,

through Manhattan, ·New York. 1343 and 2.)

states

Code, Sections

FORFEITURE 42. fraud offenses

ALLEGATIONS

WITH RESPECT

TO COUNT ONE

As the result in violation

of committing of 18 U.S.C.
§

one or more of the mail 1341 as alleged in

Count One of this Indictment, offenses in violation

one or more of the wire fraud
§

of 18 U.S.C.

1343 as alleged

in Count One care in

of this Indictment, offenses

~nd one or more of the Federal of 18 U.S.C.
§

health

in violation

24 and

§

1347 as alleged PETER J.

Count One of this Indictment, LESNIEWSKI, NOONE, RICHARD

PETER J. AJEMIAN,

MARIA RUSIN, MARIE BARAN, SHARON FALLOON,

JOSEPH RUTIGLIANO, GARY SATIN, STEVEN

GREGORY GAGLIANO, GREGORY KARL

REGINA WALSH, EHRLINGER, FRANKLIN

BRIAN DELGIORNO, PLAIA, MICHAEL GARY SUPPER,

PHILIP STAVOLA,

PULSONETTI, MICHAEL

BIANCHINI, BRITTEL,

DASARO, the

KEVIN NUGENT,

and THOMAS DELALLA, States, pursuant
§

defendants, U.S.C.

shall forfeit

to the United

to 18

s

981(a) (1) (C) and

s

982 (a) (7), and 28 U.S.C that constitutes

2461, all

property, directly

real and personal, and indirectly,

or is derived, traceable to the

from gross proceeds

commission

of the offense.

29

Substitute 43.

Assets

Provision forfeitable property,

If any of the above-described

as a result of any act or omission (1) cannot be located diligence; (2) has been transferred a third person; (3) has been placed Court; (4) has been substantially (5) has been commingled be subdivided without difficulty;

of the defendants: of due

upon the exercise

or sold to, or deposited

with,

beyond

the jurisdiction

of the

diminished

in value;

or

with other property

which cannot

it .is the intent of the united 982(b) and 21 U.S.C. property
§

States, pursuant

to 18 U.S.C.

§

853(p),

to seek forfeiture

of any other

of said defendant property.

up to the value of the above

forfeitable

(Title 18, United States Code, Sections 981, 982, and 1347; Title 21, United States Code, Section 853(p); Title 28, United States Code, Section 2461) FORFEITURE 44. Federal health ALLEGATIONS WITH RESPECT TO COUNT FOUR

As the result care offenses

of committing in violation

one or more of the of 18 U.S.C.
§

24 and §

1347, alleged

in Count Four of this Indictment,

PETER J. AJEMIAN, RUTIGLIANO, STEVEN

PETER J. LESNIEWSKI, GREGORY NOONE,

MARIA RUSIN, MARIE BARAN, JOSEPH SHARON
30

REGINA WALSH,

FALLOON,

GARY SATIN,

GAGLIANO, GREGORY DASARO, DELALLA, pursuant personal,

RICHARD

EHRLINGER, FRANKLIN

BRIAN DELGIORNO, PLAIA, MICHAEL

PHILIP

PULSONETTI, MICHAEL

BIANCHINI,

STAVOLA,

KARL BRITTEL,

KEVIN NUGENT,

GARY SUPPER,

and THOMAS States,

the defendants, to 18 U.S.C.
§

shall forfeit

to the United

982(a) (7), all property, or is derived,

real and and indirectly,

that constitutes

directly

from gross proceeds

traceable Substitute

to the commission Assets Provision

of the offense.

45. as a result

If any of the above-described

forfeitable

property,

of any act or omission

of the defendants: of due

(1) cannot be located upon the exercise diligence; (2) has been transferred a third person; (3) has been placed Court; (4) has been substantially (5) has been commingled cannot be subdivided without diminished beyond

or sold to, or deposited

with,

the jurisdiction

of the

in value;

or

with other property

which

difficulty; States, pursuant to 18 U.S.C.
§

it is the intent of the united 982(b) and 21 U.S.C.
§

853(p),

to seek forfeiture

of any other

property

of said defendants property. (Title 18, United Title 21, United

up to the value of the above

forfeitable

States States 31

Code, Sections 982; Code, Section 853)

FORFEITURE ALLEGATION WITH RESPECT COUNTS FIVE THROUGH NINETEEN 46. fraud offenses Five Through As the result of committing in violation of 18 U.S.C.
§

TO

one or more of the mail 1341, alleged in Counts

Nineteen

of this Indictment,

and one or more of the
§

wire fraud offenses Count Twenty LESNIEWSKI, NOONE, RICHARD

in violation

of 18 U.S.C.

1343, alleged PETER J.

in

of this Indictment,

PETER J. AJEMIAN, JOSEPH

MARIA RUSIN, MARIE BARAN, WALSH, SHARON FALLOON,

RUTIGLIANO,

GREGORY

REGINA

GARY SATIN, STEVEN GAGLIANO, PHILIP PULSONETTI, MICHAEL GREGORY KARL

EHRLINGER, FRANKLIN

BRIAN DELGIORNO, PLAIA, MICHAEL GARY SUPPER,

BIANCHINI, BRITTEL,

STAVOLA,

DASARO, the

KEVIN NUGENT,

and THOMAS DELALLA, States, pursuant

defendants, U.S.C.
§

shall forfeit·to

the United
§

to 18 real and

981(a) (1) (C) and 28 U.S.C that constitutes

2461, all property,

personal,

or is derived,' directly to the commission Asset Provision

and indirectly,

from gross proceeds

traceable Substitute

of the offense.

47. property,

If any of the above-described

forfeitable

as a result of any act or omission

of the defendant(s): of due

(1) cannot be located upon the exercise diligence; (2) has been transferred a third person; (3) has been placed beyond

or sold to, or deposited

with,

the jurisdiction

of the

32

(4) has been substantially (5) has been commingled 'cannot be subdivided without

diminished

in value;

or

with other property .

which

difficulty;

it is the intent of the united States,
§

pursuant

to 21 U.S.C. of said property.

853'(p), to seek forfeiture

of any other property forfeitable

defendants

up to the value of the above

(Title 18, United States Code, Section 981(a) (1) (C)i Title 21, United States Code, Section 853(p)i Title 28, United States Code, Section 2461)

United

States Attorney

33

Form No. USA-33s-274 (Ed. 9-25-58)

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

UNITED STATES OF AMERICA

- v.PETER J. AJEMIAN, PETER J. LESNIEWSKI, MARIA RUSIN, MARIE BARAN, JOSEPH RUTIGLIANO, GREGORY NOONE, REGINA WALSH, SHARON FALLOON, GARY SATIN, STEVEN GAGLIANO, RICHARD EHRLINGER, BRIAN DELGIORNO, . PIDLIP PULSONETTI, GREGORY BIANCIDNI, FRANKLIN PLAIA, MICHAEL STAVOLA, MICHAEL DASARO, KARL BRITTEL, KEVIN NUGENT, GARY SUPPER, THOMAS DELALLA, Defendants.

INDICTMENT SI 11 Cr. 1091 (VM) (Title 18, United States Code, Section 2, 287, 371, 1341, 1343, 1347 and 1349)

PREET BHARARA
United States Attorney.

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