This story brought to mind another one from years ago. These kinds of scams have been going on in NYC for decades.
http://www.nypost.com/p/pagesix/first_pension_marathon_man_ImWmzeHTtKxLHMhKydbC8N
Someone I used to know (now deceased) took a disability retirement for his bad back, some neighbor got mad at him, took a photo of him water-skiing, and sent it to the insurance company. They sent out an investigator who verified the fraud, and they cut his ass loose. That must have left a mark. :’)