Sunday, February 20, 2011

CBS: $25 billion spent on fraudulent Disability for Federal Workers

The GAO started with the obvious. They cross-referenced federal paychecks with the names on federal disability. In just three agencies alone -- the Treasury, the U.S. Postal Service and the Defense Finance and Accounting Service -- 1,500 federal employees were found getting disability they probably didn't deserve from October 2006 to December 2008.

One case involved a Michigan woman. She qualified for disability because of mood and personality disorders. Seven months later, she found work as a letter carrier but kept on taking disability checks, a total of $37,000.

A Pennsylvania woman collected disability checks even as surveillance video showed her working as a mail clerk. Total cost: $19,000 in fraudulent payments.