Attorney General Letitia James says Danilo Pesce withdrew benefits that continued after his neighbor’s death. The case offers a reminder to notify retirement systems when a pensioner dies, highlighting instances of teacher pension theft.

A Pelham man has pleaded guilty to stealing pension payments intended for a retired teacher and paid $147,000 in restitution, according to New York Attorney General Letitia James.

Danilo Pesce, 60, entered the plea on November 2 in Albany County Court before Judge Andra Ackerman. He admitted to fourth-degree grand larceny, a Class E felony, the attorney general’s office said in its announcement.

The office identified the retired teacher as Jack Lee Morgan, a former Pelham school district employee who retired in 1991. Investigators said pension deposits continued after Morgan died in 2020 because the New York State Teachers’ Retirement System, or NYSTRS, had not been notified of his death.

The announcement reports $141,968 in stolen benefits. It says Pesce paid $147,000 back to the retirement fund, including interest. The release does not announce a prison term or another sentence.

How the pension payments continued

According to the attorney general’s office, Morgan had no living beneficiary for his pension when he died. Payments should therefore have stopped in this case. Instead, the system continued sending $3,497 a month to his bank account.

The office said Pesce had acted as Morgan’s caretaker before Morgan’s death and had been added to his bank account and the deed to his Pelham home. Investigators found that Pesce controlled the account and regularly took money out after Morgan’s death.

Prosecutors said the withdrawals began on March 17, 2020. The money went toward maintaining and renovating Morgan’s house, where Pesce and his wife were living part-time, according to the release.

The new announcement describes a guilty plea, not merely a new accusation. It follows Pesce’s July 30 arrest and arraignment.

James said the case concerned a retirement system that “thousands of hard-working New York teachers rely on.” Her office said it would continue pursuing thefts involving benefits and retirement funds.

A new outcome, with updated figures

Readers who saw the earlier case announcement may notice differences. The July 30 arrest release described $143,385 in alleged theft and a second-degree grand larceny charge. The November 2 plea release identifies $141,968 and a plea to fourth-degree grand larceny.

This report uses the latest announcement for the outcome and amount. The new release does not explain the change in the theft figure. The earlier allegations should not be substituted for the offense identified in the guilty plea.

The attorney general thanked the State Police Financial Crimes Unit for its help. Assistant Attorney General Christopher Baynes is prosecuting the case. The investigation also involved the office’s Major Investigations Bureau, Public Integrity Bureau and forensic auditors.

Why this matters to New York families

Although the case is in Westchester and Albany counties, its practical lesson extends to teachers, retirees and families across New York, including the Mohawk Valley: a retirement system needs notice when a member or beneficiary dies.

Survivor benefits depend on the person’s circumstances and pension arrangements. Morgan’s lack of a living pension beneficiary was a fact of this particular case. Families should not assume the same outcome applies to every retiree or decide on their own whether a continuing deposit is payable.

NYSTRS advises people to report a death as soon as possible. For a retiree’s death, the published number is 800-348-7298, extension 6140. For the death of a retiree’s beneficiary, it lists extension 6150. The system says prompt notice helps eligible beneficiaries receive any benefits payable to them.

Be prepared to provide the deceased person’s name, date of death, membership status, and the name, relationship and phone number of the person notifying NYSTRS. For an active member, the system also requests the employer’s name.

Where to report suspected misuse

NYSTRS has a separate fraud-reporting channel. Its hotline is 800-348-7298, extension 2846. The system also offers a reporting form and allows anonymous complaints.

A useful report describes who was involved, what happened, when and where it occurred, and how the suspected misuse took place. NYSTRS says its staff assess reports before deciding what action is warranted. Reporting a concern does not establish that a person committed a crime.

Reporting sources: New York Attorney General’s November 2, 2026 announcement, its July 30 case announcement, and NYSTRS guidance. Featured image: official portrait of Letitia James, courtesy of the New York State Attorney General; not a photograph of this court proceeding.