Pension Fraud Led to Increased State-Aid for School Districts

by Rhonda J Mangus | May 2, 2008 at 12:04 pm | 364 views | add comment

Sources Indicate Some 'State Pension Scammers' Offered Preliminary Settlements

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A dozen attorneys around the state who may have received credits for state pensions improperly but did not actually collect any money have been offered preliminary settlements by Attorney General Andrew Cuomo's office, according to several attorneys familiar with the situation.

According to an article by Robert E. Kessler at Newsday, sources have indicated that New York State Attorney General Cuomo's office has offered preliminary settlement offers that include the "payment of financial penalites, ..., along with various agreements about conditions of future work for school district or other government agencies,...".

At least one lawyer will not admit to any wrong-doing, while others are pointing fingers at BOCES (Board of Cooperative Educational Services), alledging that they entered the State's pension system "only at the prodding of BOCES Officials, whose districts got State reimbursement for attorneys considered as employees." At least 90 attorneys have been issued subpoenas, and not all school districts are a component part of BOCES.

Cuomo spokesperson, Johm Milgrim, said only, "We have a widespread investigation that is ongoing and it would not be appropriate to comment."

Update: 9 May 2008

Not only were New York State lawyers put on school district payrolls to make them eligible to join the State pension system now, according to Buffalo News journalist Tom Precious (Albany Bureau), "Cuomo said there was evidence BOCES approached the firm [Hodgson Russ who has more than 230 attorneys in 8 offices in Albany, Buffalo, Johnston, New York, NY, Boca Rotan and Palm Beach, FL, and Toronto, and who have represented school districts for years, settled with Cuomo for $50,000] with the idea as a way to drive more state aid to it and the districts. Cuomo said...he did not know how much extra state aid was improperly paid to the BOCES and the school districts. He said the investigation is still ongoing as to whether there will be any legal or financial actions against any of the BOCES entities or individuals."

BOCES Superintendents are figuratively considered "right hand men" of the New York State Department of Education Commissioner; they oversee BOCES and all school districts in their jurisdiction. See full story here: http://www.buffalonews.com/258/story/341891.html

Update: 12 June 2008

The link immediately above is no longer available. Cross-reference http://www.nowpublic.com/world/nys-attorney-general-cuomo-taxpayers-have-been-ripped-enough for a direct link to the Chicago Tribune newspaper, who is providing the public a complete timeline of the pension scandal investigation.