New York Attorney General Letitia James announced the arrest and arraignment of Danilo Pesce, 60, of Pelham, on July 30, 2026. Pesce is charged with one count of Grand Larceny in the Second Degree after an Office of the Attorney General investigation found that he withdrew $143,385 from the bank account of his deceased neighbor, Jack Lee Morgan. The account received pension payments from the New York State Teachers’ Retirement System (NYSTRS). Pesce pleaded not guilty in Albany County Court.
Morgan retired from the Pelham school district in 1991. He died in March 2020 and had no living beneficiary for his pension, so NYSTRS payments should have ceased. NYSTRS was not notified of Morgan’s death and continued making monthly payments of $3,497 to his bank account. The retirement system became aware of his death in April 2024 and immediately stopped the payments.
Before Morgan’s death, Pesce allegedly acted as his caretaker. He was added to Morgan’s bank account and to the deed of Morgan’s home in Pelham. According to the investigation, Pesce began regularly withdrawing money from the account on March 17, 2020, less than a month after Morgan’s death. The withdrawals were used for maintenance and renovations at Morgan’s home, where Pesce and his wife were living part-time.
NYSTRS mistakenly paid $171,879 after Morgan’s death and recovered $28,594 in unspent funds from the bank account. The total withdrawals identified by the investigation were $143,385. Grand Larceny in the Second Degree is a Class C felony. If convicted, Pesce faces a maximum sentence of five to 15 years in prison. The charges are accusations, and Pesce is presumed innocent unless and until proven guilty in 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.”
Pesce was arraigned before Judge Andra Ackerman in Albany County Court. Attorney General James thanked the New York State Police’s Financial Crimes Unit for assisting with the investigation. The case is being prosecuted by Assistant Attorney General Christopher Baynes, with assistance from Analysts Merredith Youngblood and Thomas Hutto. Forensic accounting was conducted by Principal Auditor Investigator Brenna Magruder under the supervision of the Office of the Attorney General’s Forensic Audit Section.