Continental suing pilots over divorce scam

www.continental.com

Continental Airlines has revealed that it is taking legal action against nine of its pilots that allegedly got divorces so their ex-spouses could collect retirement benefits – while the pilots continued to fly.

According to the airline, the pilots involved in the scam concealed the divorces from their children and their friends, and then re-married after the ex-spouses received payouts from the carrier.

Continental said that the amount it paid out amounted to $10-11 million, all in pension distributions.

Eight of the nine pilots involved have either quit or been fired, but one was hired back by the airline after making a commitment to pay the money back, according to an airline spokesman - although he had been named as a defendant in the lawsuit after failing to repay the pension distribution. The “ex-spouses” were also named as defendants in the action.

The suit was filed in Houston’s federal district court last week by the airline and the pilots’ retirement plan committee. In the action, Continental is asking the court to order that the pilots return the money and also to declare that the airline was not in violation of any anti-discrimination laws when it fired the pilots.

Continental charged that the pilots were taking advantage of a loophole in a federal pension law that allows payment of benefits in divorce actions, before the worker actually retires. Seven male and two female pilots were named in the lawsuit.

For more information on this article please visit www.forbes.com.

www.continental.com