A 60-year-old Westchester resident faces serious criminal charges after prosecutors say he exploited a deceased neighbor to steal thousands of dollars. Danilo Pesce of Pelham was arrested following an investigation by the New York Attorney General’s office, which alleges he siphoned over $143,000 in pension payments.
The funds originated from the New York State Teachers' Retirement System. The account belonged to Jack Lee Morgan, a retired Pelham teacher who passed away in March 2020. Because the system was not notified of Morgan's death, monthly payments of $3,497 continued to be deposited into his bank account for years.
Investigators state that Pesce, who had served as Morgan's caretaker, gained access to the bank account and home deed before the death occurred. Starting shortly after Morgan died, Pesce began making regular withdrawals. Prosecutors allege he spent this money on maintenance and renovations for the home where he and his wife stayed.
The pension fund discovered the error in April 2024 and halted the payments. While the system recovered nearly $29,000 from the remaining balance, the bulk of the money was already spent. Pesce now faces a charge of second-degree grand larceny, which carries a potential sentence of five to 15 years in prison.
This case highlights the vulnerabilities in automated benefit distribution systems when death notifications are delayed. Attorney General Letitia James stated that such theft undermines the integrity of public retirement funds meant for long-serving educators.