Continental Airlines is suing 9 pilots and has fired 8 for their involvement in a pension fraud scheme that involved fake divorces back in 2005. It worked like this: the pilots would get a so-called “paper divorce” (a divorce on paper where the couple did not actually split up) and sign over pilot pension benefits to the now ex-spouse. The ex-spouse would then request a lump-sum payment of the benefit. Then, flush with cash, the couple would re-marry. (Brilliant!)
The airline says that the pilots went through with the fraud because they were afraid they would lose their pension benefits in the industry’s financial turmoil.