The single largest pension default in U.S. history should never have happened, say former pilots who lost stock and the bulk of their pensions in the United Airlines bankruptcy. The pilots say they are in the early stages of preparing to file a RICO lawsuit based on what they claim was the airline’s fraudulent listing of its frequent flyer Mileage Plus asset – worth an estimated $15 billion at the time - as a liability in documents submitted to a Chicago bankruptcy court and the federal Pension Benefit Guarantee Corporation (PBGC), which took over all of the airline’s pension obligations. Jerry Summers, a former United pilot who involuntarily retired after 36 years of.
Read more at the Washington Examiner:
