BANGOR, Maine – Gerald E. Bailey, 68, of Pittston, Maine pled guilty on Tuesday, April 23 to charges of collecting pension that he was not entitled to.
Bailey retired from Springfield Terminal Railway in 2004 and began receiving his pension payments from the Railroad Retirement Board (RRB). According to an affidavit filed by assistant U.S. attorney Gail Fisk Malone, Bailey returned to work from 2007 to 2010 with the Maine Eastern Railroad.
Bailey was able to avoid detection during that time by using another person’s social security number and name on his time cards. He received pension totaling $83,398 during that time which he was not entitled to.
Once you retire, it is illegal to continue to work and receive funds from the RRB at the same time. Employers are required to report earnings of each employee yearly to the RRB. It is unclear how the RRB detected the fraud.
At sentencing, Bailey could face up to 10 years in prison with three years of parole and fines up to $250,000. Bailey was not a member of the UTU.
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