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LIRR manager arrested in pension scandal

Posted by RonInBayside on Mon Nov 17 11:13:44 2008

Sources: LIRR manager charged in pension scandalState attorney general accuses 23-year railroad vet of official misconduct in controversy over disability benefits, sources say
BY ROBERT E. KESSLER AND JOHN VALENTI | robert.kessler@newsday.com john.valenti@newsday.com
10:13 AM EST, November 17, 2008
A Long Island Rail Road official was arrested Monday by detectives from the office of State Attorney General Andrew Cuomo on charges of official misconduct in connection with the recent railroad pension scandal, sources said.

Sources identified the official as Fred Kreuder, a 23-year employee who most recently was working as the manager of operations support and analysis for the LIRR.

Those sources told Newsday that Kreuder was arrested at his home in Bellmore and is scheduled to be arraigned in State Supreme Court in Kew Gardens, Queens, on Monday.

The sources did not want to be identified because the suspect had yet to be arraigned.


Kreuder has been charged with official misconduct and with receiving unlawful gratuities, the sources told Newsday. Both are misdemeanors.

Cuomo spokesman Alex Detrick declined to comment Monday morning, as did railroad spokesman Salvatore Arena.

The Rockville Centre attorney who is representing Kreuder, William Petrillo, also declined to comment. Kreuder had been suspended by LIRR president Helena Williams in October.

Williams did not identify the suspended employee. Petrillo at the time confirmed that his client had been suspended, but said he was "convinced that when the investigation is completed, the attorney general will conclude that Mr. Kreuder had not done anything wrong."

At the time, Williams said the employee was suspended because he was doubling as a consultant, advising fellow employees on how to take advantage of the embattled Federal Railroad retirement system.

That suspension came as Cuomo announced his office was looking into potential abuses of disability benefits by LIRR employees.

Kreuder had figured in recent hearings by Cuomo related to the LIRR pension scandal. Though he was not named, officials pointed to the example of an employee at the railroad who was giving advice of how to get disability pensions.

Kreuder had worked in the railroad's pension office but had been moved to a new position, sources told Newsday, after an e-mail was discovered that advised a colleague on how to apply for the U.S. Railroad Retirement Board's occupational disability benefit.



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