Federal and International, Law and Order

Former Railroad Employee Sentenced to Two and a Half Years in Federal Prison

Former Railroad Employee Fraudulently Obtained Disability Benefits

Chicago, IL-(ENEWSPF)- A former railroad engineer employee received a sentence of two and a half years in federal prison for fraudulently obtaining disability benefits.

SCOTT CARLBERG operated and managed a tanning salon in Wisconsin for six years. At the same time, he received occupational disability benefits from the U.S. Railroad Retirement Board.  In his application for benefits, Carlberg asserted that he could no longer perform any work. He said this was due to numerous daily limitations. These included short-term memory loss, poor concentration, irritability, frequent loss of temper, and information-processing difficulties.  After the benefits were approved, Carlberg misrepresented the nature of his work at the salon. He also lied about the income he received from it.

A federal jury in Chicago earlier this year convicted Carlberg, 53, of Menomonie, Wisc., on four counts of wire fraud.  In addition to the prison term, U.S. District Judge Edmond E. Chang on Tuesday ordered Carlberg to immediately pay more than $279,000 in restitution to the Railroad Retirement Board.

Team Behind the Case

Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, announced the sentence. With him were Douglas Williams, Deputy Assistant Inspector General for Investigations at the RRB, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services Office of Inspector General.  Assistant U.S. Attorneys Richard M. Rothblatt and Michelle Parthum represented the government.

Carlberg was one of six defendants charged in Chicago as part of an investigation into fraud perpetrated against benefit programs administered by the RRB to rail workers and their families.  The five other defendants pleaded guilty. They admitted fraudulently receiving benefits while simultaneously performing various types of work. Their work included construction, landscaping, managing a donut shop, and captaining a charter fishing boat.

If you believe someone you know is receiving fraudulent disability benefits from the U.S. Railroad Retirement Board, you can contact the RRB OIG anonymously by calling 1-800-772-4528 or by sending an email to [email protected].