Key Takeaways
- • Danilo Pesce, 60, of Pelham Manor, pleaded guilty on Monday, Nov. 2 in Albany County Court to a reduced charge of fourth-degree grand larceny after collecting pension payments belonging to his deceased neighbor, retired Pelham school teacher Jack Lee Morgan.
- • Pesce repaid $147,000 to the New York State Teachers' Retirement System, which included nearly $6,000 in interest, according to the state Attorney General's Office.
- • The erroneous payments totaled $171,000 in monthly installments of $3,497 over roughly four years, continuing from Morgan's death in March 2020 until spring 2024, because the retirement system was never notified of the death.
- • Pesce withdrew nearly $142,000 and used part of it to fund renovations to Morgan's Hunter Avenue home, which he and his wife still own according to the town's assessment roll.
- • Pesce received a conditional discharge after restitution, avoiding incarceration or probation, down from a original second-degree grand larceny charge carrying up to 15 years.
Summary
Pesce had been acting as caretaker for his neighbor, Jack Lee Morgan, who retired from the Pelham school district in 1991. Morgan died in March 2020 at age 87 with no living beneficiary to his pension, so payments should have stopped. Because the retirement system was never notified of his death, monthly payments of $3,497 continued to be deposited into his bank account until spring 2024, totaling $171,000 over four years.
Pesce controlled the account, and he and his wife had been added to the deed of Morgan's Hunter Avenue home a few weeks before Morgan's death. According to the Attorney General's Office, Pesce withdrew nearly $142,000 and used part of it to fund renovations to the house, where he and his wife lived part-time. The town's assessment roll still lists them as owners.
The original charge was second-degree grand larceny, which carries up to 15 years in prison. The reduced felony to which Pesce pleaded guilty carries a maximum of four years. The $147,000 restitution included nearly $6,000 in interest. Attorney General Letitia James said in a news release that Pesce "took advantage of the retirement system that thousands of hard-working New York teachers rely on."
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