Neighbor Collected Dead Westchester Teacher's Pension Benefits, Stealing More Than $143K: AG

PELHAM, NY — A lucrative scam by a Westchester man left a state pension fund holding the bag, according to investigators.

New York Attorney General Letitia James said 60-year-old Danilo Pesce, of Pelham, was arrested and arraigned for stealing over $143,000 in pension benefits issued by the New York State Teachers' Retirement System (NYSTRS) to his deceased neighbor, Jack Lee Morgan.

An investigation by the Office of the Attorney General (OAG) found that after Morgan's death in March 2020, Pesce made withdrawals from Morgan's bank account, which was funded by NYSTRS pension payments that improperly continued after his death, according to the AG. In total, Pesce stole $143,385 of Morgan's pension benefits, the OAG said.

Pesce has pleaded not guilty to second-degree grand larceny in Albany County Court.

"Danilo Pesce undermined our retirement system by stealing pension funds that did not belong to him," Attorney General James said. "This theft was not only heartless, but it dishonors the hardworking New Yorkers who have dedicated their lives to teaching and guiding our youth. My office will continue to prosecute those who attempt to take advantage of our retirement systems and steal from the retired New Yorkers who depend on it."

Morgan was a NYSTRS pensioner who retired from the Pelham school district in 1991. At the time of his death in 2020, Morgan had no living beneficiary for his pension, and therefore NYSTRS payments should have ceased. However, NYSTRS was never notified of Morgan's death and continued to make monthly payments of $3,497 to Morgan’s bank account.

Prior to Morgan’s death, Pesce acted as his caretaker, according to investigators. In his position as caretaker, Pesce was added to Morgan's bank account and the deed of Morgan's home in Pelham, the AG said. The OAG said their investigation found that beginning on March 17, 2020, less than a month after Morgan’s death, Pesce regularly withdrew funds from Morgan's bank account, which he controlled.

Pesce spent the money on maintenance and renovation of Morgan's home, where Pesce and his wife were living part-time, according to investigators. The total amount of withdrawals from Morgan's account totaled $143,385, the OAF said.

The NYSTRS became aware of Morgan's death in April 2024 and immediately ceased payments. In total, NYSTRS had mistakenly paid out $171,879, but was able to take back $28,594 in unspent funds from Morgan's bank account.

If convicted, Pesce faces a sentence of five to 15 years in prison.

Attorney General James thanked the New York State Police's Financial Crimes Unit for assisting in the investigation.