Pelham Caretaker Pleads Guilty to Pension Theft

Caretaker Pleads Guilty to Pension Theft

Danilo Pesce admitted guilt in Albany County Court to fourth-degree grand larceny after siphoning $141,968 in unauthorized pension distributions, according to public filings released by New York Attorney General Letitia James. The 60-year-old Pelham resident served as a caretaker for Jack Lee Morgan, a retired school district teacher whose monthly checks continued disbursing long after his death.

Morgan passed away in 2020 without any living beneficiary listed on file. The New York State Teachers' Retirement System kept transmitting $3,497 every month into the deceased educator's active bank account. The payments went completely unnoticed by administrators for over three years.

Unauthorized Withdrawals Exceed $141K Total

Investigators from the attorney general's office established that Pesce gained access to the victim's banking portal by being added as a joint account holder while Morgan was still alive. He also held joint status on the deed to Morgan's Pelham residence.

Starting on March 17, 2020, less than thirty days after the retired teacher expired, Pesce initiated regular cash extractions from the account. He channeled the stolen capital directly into structural upkeep and home renovations for the property where he and his spouse maintained a part-time residence.

The embezzlement continued unchecked until state investigators audited the distribution records. Law enforcement officers arrested Pesce on July 30 of this year.

Full Restitution Paid to State Fund

Court documents confirm that Pesce has deposited a total of $147,000 back into the retirement system's accounts. That sum covers the $141,968 principal alongside $6,000 in assessed interest.

Attorney General Letitia James issued a formal statement condemning the exploitation of the public retirement fund. The state penal system will process sentencing following completion of pre-sentence reports by Albany County probation officers.