Attorney General James Announces Arrest and Arraignment of Pelham Man for Stealing Over $143,000 in Pension Benefits

July 30, 2026

NEW YORK - New York Attorney General Letitia James today announced the arrest and arraignment of Danilo Pesce, 60, of Pelham, 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 numerous withdrawals from Morgan's bank account, which was funded by NYSTRS pension payments that improperly continued after his death. In total, Pesce stole $143,385 of Morgan's pension benefits. Pesce pleaded not guilty today to Grand Larceny in the Second Degree in Albany County Court.

"Danilo Pesce undermined our retirement system by stealing pension funds that did not belong to him," said Attorney General James. "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 allegedly acted as his caretaker. In his position as caretaker, Pesce was added to Morgan's bank account and the deed of Morgan's home in Pelham. The OAG's 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. The total amount of withdrawals from Morgan's account totaled $143,385.

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.

Pesce is charged with one count of Grand Larceny in the Second Degree, a Class C felony. If convicted, Pesce faces a maximum sentence of five to 15 years in prison.

Pesce was arraigned today before Judge Andra Ackerman in Albany County Court. These charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty in a court of law.

Attorney General James is committed to holding individuals who take advantage of benefits accountable for their fraud. In July 2026, Attorney General James announced the arrest and indictment of a Suffolk County man for fraudulently collecting more than $100,000 in disability benefits from the Social Security Administration (SSA). In July 2025, Attorney General James announced the arrest and conviction of a Staten Island man for fraudulently collecting over $200,000 of Social Security benefits for years. In June 2023, Attorney General James announced the guilty plea of a former NYPD detective for fraudulently collecting more than $156,000 in disability benefits from SSA. In August 2022, Attorney General James announced the guilty plea of a Hempstead woman for stealing over $240,000 in pension benefits issued to her deceased mother by NYSTRS. In May 2021, Attorney General James announced the arrest of a Huntington man for fraudulently collecting more than $200,000 in disability benefits from SSA.

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

The OAG investigation was conducted by Detective Dennis Churns, under the supervision of Deputy Chief Juanita Bright, Assistant Chief Samuel Scotellaro, and Detective Supervisor Peter Fitzgerald of the Major Investigations Bureau. The Investigations Bureau is led by Chief Investigator Oliver Pu-Folkes.

The OAG case is being prosecuted by Assistant Attorney General Christopher Baynes, with the assistance of Analysts Merredith Youngblood and Thomas Hutto. Forensic accounting was conducted by Principal Auditor Investigator Brenna Magruder, under the supervision of Chief Auditor Kristen Fabbri and Deputy Chief Auditor Sandy Bizzarro of the Forensic Audit Section. The Public Integrity Bureau is led by Bureau Chief Gerard Murphy and Deputy Bureau Chief Mary Gorman. Both the Public Integrity Bureau and the Investigations Bureau are part of the Division for Criminal Justice, which is led by Chief Deputy Attorney General José Maldonado and overseen by First Deputy Attorney General Jennifer Levy.