COMPTROLLER LIU UNCOVERS PENSION FRAUD – SUSPECTS CASH IN ON DEAD PENSIONERS

    NYC Comptroller John C. Liu joined by NYC Department of Investigation (DOI) Commissioner Rose Gill Hearn announced today that the Comptroller’s Office has uncovered nearly a half-million dollars in suspected pension fraud.

   “Fraud and waste anywhere in city government cannot and should not be tolerated,” Comptroller Liu said.  “This suspected pension fraud wastes the public’s money and undermines security for the city’s workers and retirees". "We will work with the DOI to aggressively investigate the suspected abuse of the public’s money.”

   As part of Comptroller Liu’s efforts to root out waste and fraud, the Comptroller’s Office applied cutting-edge use of data analysis earlier this year to match pension payments against death records from 2007 to 2009.  Upon examination, the Comptroller’s Office found 14 specific cases where either a person or persons continued to cash the dead pensioner’s checks, or pension checks continued to be deposited into the dead pensioners’ bank accounts. Comptroller Liu's Office will work with DOI to further investigate the 14 cases of potential pension fraud. Along with the 14 cases, the Comptroller’s Office uncovered 171 additional cases totaling nearly two million dollars where pension payments were issued to deceased pensioners from 2007 to 2009.  The Comptroller’s Office will continue its examination to determine why the checks were still issued to the deceased pensioners.

   Chief among the findings:
• One person or persons cashed 38 pension checks totaling $139,818 after the pensioner died in 2007, using the dead pensioner's NYS driver's license. When the license expired in 2010, it was renewed and the person or persons continued to cash the dead pensioner’s checks.
• Another person or persons cashed or deposited 25 pension checks totaling $9,696 after the pensioner died in 2008.
• The remaining 12 cases involved pension payments to dead pensioners totaling $310,456.

   The Comptroller’s Office began matching pension payments against social security death records in February shortly after Comptroller Liu took office. Total pension payments between 2007– 2009 totaled $29 billion. The Comptroller administers pension payments as the custodian of the New York City Employee Retirement System (NYCERS). Comptroller Liu will conduct regular reviews of pension payments to prevent further waste and fraud in city pensions.