DiNapoli Revokes Retirement Membership of 4 Attorneys

ALBANY, N.Y. -- State Comptroller Thomas P. DiNapoli on Thursday announced in press release that his office has revoked four attorneys’ membership in the New York State and Local Retirement System and revoked five years of service credit for another lawyer from the same firm because they were incorrectly reported as employees to the Retirement System by Hamilton-Fulton-Montgomery BOCES.

The comptroller’s office revoked the membership of James Girvin, Kathy Ann Wolverton, Kristine Lanchantin and Jeffrey Honeywell. Service credit from BOCES for the fifth attorney, Salvatore Ferlazzo, was revoked. DiNapoli said his office will be returning the local government’s Retirement System contributions paid for these individuals.

DiNapoli, who took office in February 2007, said the actions announced Thursday were part of his office’s on-going review and reform of the Retirement System. Earlier this month, DiNapoli announced strengthened regulations to provide clarification and guidance for local governments when they determine who is an employee. DiNapoli also previously announced his office was reviewing the records of attorneys reported as employees to the Retirement System.

DiNapoli noted that his office has been cooperating with Attorney General Cuomo’s office in its investigation into possible criminality involving pension service credit. DiNapoli added that his office would recover any pension benefits paid out to wrongly classified individuals who have already retired. He said he would ask the attorney general to pursue civil recovery of those benefits when necessary.

According to the press release, Hamilton-Fulton-Montgomery BOCES improperly reported Girvin, Wolveron, Lanchatin, Honeywell and Ferlazzo as employees to the Retirement System while these individuals were employed by the same private law firm. After learning of the concerns raised by DiNapoli’s office, BOCES immediately removed all five lawyers from its payroll and fired the law firm.

According to the press release, the Hamilton-Fulton-Montgomery BOCES reported the attorneys as full-time and working a total of 1,157 days at BOCES, but they actually worked a total of 196 days. None of these individuals are retired. They inappropriately earned 5 to 16 years of service credit in the Retirement System. These attorneys did not work fixed hours, submit time sheets or work onsite at BOCES. In addition, BOCES management did not oversee the work they performed. In fiscal year 2006-07, BOCES paid the five attorneys a total of $234,000.

DiNapoli has sent letters to the attorneys and to the Hamilton-Fulton-Montgomery BOCES advising them of his actions.

Earlier this month, DiNapoli announced his office suspended the pension of an attorney on Long Island, Lawrence Reich, because he was improperly reported as an employee by several Long Island school districts.

DiNapoli’s office is providing assistance to help participating local governments determine whether an individual should be considered an employee or an independent contractor. Those municipalities needing assistance should call (518) 474-1101.

-- NYSSCPA.org News Staff

Posted on 4/17/08