CO sues pilots getting sham divorces

 
Old May 22, 09, 1:37 pm
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CO sues pilots getting sham divorces

http://www.usatoday.com/travel/fligh...rce-sham_N.htm

Several pilots made out with 10mn+ in retirement money for their wives by fililng for divorce, collecting the money, only to remarry later.

Doobie or someone more qualified than I can chime in on the specifics of how the retirement benefits work.

Most surprising thing is that one of the pilots caught was rehired after promising to pay back the money. Also interesting it is not a fraud/criminal case, presumably because the language was not clear.
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Old May 22, 09, 1:40 pm
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I saw this a bit ago. I'd imagine it has something to do with in divorce court the 'retirement' being an asset and paid out to the wife while the pilot 'labors on daily', but I don't know for a fact.

Clearly the pilot that worked out a repayment plan wanted to keep his job and thought this the best means, admit wrong and repay the amount(in the end it was his, but just gotten prior to retirement, and probably with less paid in than would have been at true retirement)
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Old May 22, 09, 1:49 pm
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Interesting strategy to tap into the pension before the pension is no longer offered as a benefit.
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Old May 22, 09, 2:03 pm
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Strategy???

Originally Posted by CO 1E View Post
Interesting strategy to tap into the pension before the pension is no longer offered as a benefit.
I assume that it tongue in cheek. "scheme", "plot" or "deception" come to mind.
It also mentions that the one pilot who made an agreement to pay it back, ultimately did not. One would think that would probably be a "career altering event".

Last edited by xzh445; May 22, 09 at 2:03 pm Reason: sp
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Old May 22, 09, 3:40 pm
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Since it's "OK" for airlines to use bankruptcy court (and the threat of bankruptcy) to get out of obligations (including pension) I don't see a problem when employees figure out how to use divorce courts in a similar way.
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Old May 22, 09, 4:07 pm
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Originally Posted by lewisc View Post
Since it's "OK" for airlines to use bankruptcy court (and the threat of bankruptcy) to get out of obligations (including pension) I don't see a problem when employees figure out how to use divorce courts in a similar way.
More info here: http://www.chron.com/disp/story.mpl/...s/6437320.html

Wonder what CO's case is.
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Old May 22, 09, 4:12 pm
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Originally Posted by channa View Post
More info here: http://www.chron.com/disp/story.mpl/...s/6437320.html

Wonder what CO's case is.
breech of contract, etc. It is pretty clear there was a deceptive intent to it all.
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Old May 23, 09, 6:06 am
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Divorce and remarrying one's ex happens all the time, right? Maybe they should have just 'shacked up'. Oh well, illegal is illegal.
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Old May 23, 09, 10:09 am
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Further testimony to the "sanctity of marriage"!
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Old May 23, 09, 6:47 pm
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To sum up: In case of divorce, the pilot's pension is considered an asset. The pilot agrees to give the pension to the non-pilot spouse. The trick is that in this case, the spouse can get the cash value immediately. Normally it can't be cashed out until retirement.

So they get a paper divorce, cash out, and remarry. Continental's charge is that the divorces are shams only to get the money early. It's in the same class as getting "married" to get a green card.
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Old May 23, 09, 9:11 pm
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Originally Posted by alanh View Post
It's in the same class as getting "married" to get a green card.
Only this one gets you out of jury duty
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Old May 23, 09, 10:38 pm
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Originally Posted by alanh View Post
To sum up: In case of divorce, the pilot's pension is considered an asset. The pilot agrees to give the pension to the non-pilot spouse. The trick is that in this case, the spouse can get the cash value immediately. Normally it can't be cashed out until retirement.

So they get a paper divorce, cash out, and remarry. Continental's charge is that the divorces are shams only to get the money early. It's in the same class as getting "married" to get a green card.
It's a sad commentary that such thought processes are necessary.
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Old May 28, 09, 12:24 pm
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http://www.chron.com/disp/story.mpl/...s/6444357.html

A couple of the pilots are claiming that CO's probe was an invasion of their privacy, stating that CO cannot make decisions on what is and is not a divorce.

It's a poorly written article IMO, but I'm no writer.
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Old May 28, 09, 2:34 pm
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I found it pretty interesting that friends and family didn't know about the divorces in question. Any of you here get divorced and conveniently forget to mention it to your friends and family?
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Old May 28, 09, 4:04 pm
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Originally Posted by alanh View Post
So they get a paper divorce, cash out, and remarry. Continental's charge is that the divorces are shams only to get the money early. It's in the same class as getting "married" to get a green card.
When this first broke (about two years ago), one of the big issues was that the federal government would also be filing charges. Pension fraud, felonious conduct, etc.

Not a lawyer, but I understand there is that part to the equation as well.

DRW
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