October 07, 2008
Bill would crack down on pension fraud
Just days before Governor David Paterson is expected to sign a bill to stiffen penalties for pension fraud, Attorney General Andrew Cuomo announced three upstate attorneys have agreed to pay $347,000 to settle allegations against them.
The bill would prohibit a lawyer from being both an employee and independent contractor of a school district or BOCES district. It also would make pension fraud a felony rather than a misdemeanor and would allow the attorney general to seek treble damages.
NY Public Payroll Watch this week will examine other aspects of the bill, including how it will affect retired public employees seeking to return to their old jobs under a so-called Section 211 waiver.
The legislation was not on Albany's radar screen until January when Newsday began a series of stories about private-sector attorneys who were listed as school or BOCES employees, qualifying them for government pensions. It also uncovered "double dipping" school superintendents who retire and are immediately re-hired by the same school district, enabling them to simultaneously collect a pension and salary.
Since then Cuomo and state Comptroller Thomas DiNapoli have launched investigations.
To date, DiNapoli has revoked pension system membership or rescinding pension credits of 35 individuals.
Cuomo, who has threatened to prosecute lawyers under existing law, has recouped $1.24 million in settlements with 65 attorneys.
On Monday, he announced two attorneys previously associated with the Albany law firm of Girvin & Ferlazzo agreed to settle allegations they were improperly listed as employees of the Hamilton-Fulton-Montgomery BOCES although they did no work.
M.Cornelia Cahill agreed to pay the state $270,000 and forfeit eight years of pension credits. John R. Sise, her brother-in-law, will pay a $35,00 settlement. According to Cuomo, he was briefly placed on the BOCES payroll for $1,000 so that he could qualify for better retirement benefits at his new job with a private college. Previously, Girvin & Ferlazzo agreed to pay a $500,000 settlement.
Also Monday, Cuomo said John D. Elmer, a retired attorney in St. Lawrence County, will pay the state $42,000. Between 1972 and 1998, Cuomo said, Elmer was improperly listed as an employee of the village of Canton, St. Lawrence-Lewis BOCES, and two school districts.
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