FOR RELEASE:

Three Lawyers Collectively Owe Retirement System
More Than $700,000

DiNapoli Rescinds Service Credit of Five Other Attorneys

State Comptroller Thomas P. DiNapoli today announced his office notified two Long Island attorneys, Albert D’Agostino and Lawrence Reich, that they must repay the Retirement System for pension benefits that were erroneously paid to them. In addition, DiNapoli’s office revoked the membership of three other attorneys and rescinded service credit of two more attorneys from across New York. The actions are part of DiNapoli’s ongoing review of the Retirement System.

“Lawrence Reich and Albert D’Agostino were wrongly reported as employees by numerous school districts and local governments,” DiNapoli said. “We’ve examined hundreds of records looking for individuals who are wrongly receiving pensions from the Retirement System. D'Agostino and Reich are the most egregious examples we’ve found so far. Their actions are unacceptable and they must return every dime that is owed to the pension fund.”

D’Agostino must repay the Retirement System $605,874 for pension payments made to him from August 2002 through March 2008 when DiNapoli’s office suspended the attorney’s pension benefit. DiNapoli’s office revoked D’Agostino’s pension after it determined that the Nassau County Planning Commission, Valley Stream Union Free School District, Lawrence UFSD and North Merrick UFSD all incorrectly claimed that D’Agostino was an employee when he actually worked as an independent contractor. After D’Agostino retired, all four entities also contracted with D’Agostino’s law firm to provide the same services. The entities reported him to the Retirement System for periods ranging from 23 years to three years, with all four entities reporting him for the final three years before he retired.

Reich must repay the Retirement System $83,624 for excess pension payments. DiNapoli’s office determined six school districts incorrectly reported Reich as an employee and suspended his pension in March. Reich’s annual pension amount was recalculated to exclude the rescinded service and is now $4,575.

DiNapoli also revoked the memberships of Deveraux Cannick, Jennifer Fremgen and Marc Reitz. DiNapoli rescinded the service credit of Henry Sobota and Norman Gross.

DiNapoli’s office determined Mount Vernon Central School District, located in Westchester County, incorrectly reported both Cannick and Fremgen as employees when they served as independent contractors since 1997, allowing them both to earn 8.75 years in service credit. The district also contracted with Aiello & Cannick, the law firm that employed Cannick and Fremgen. Both lawyers did not work set hours or keep time sheets. The district did not supervise their work or control how their work was performed.

Madison-Oneida BOCES incorrectly reported Reitz as an employee when he acted as an independent contractor for two years, allowing him to earn less than a year of service credit. Reitz previously retired from the Teachers Retirement System in 2002. At that time, TRS rescinded service credit from Reitz that was reported from two school districts and a BOCES because it determined Reitz was an independent contractor of those entities.

Madison-Oneida BOCES also incorrectly reported Sobota and Gross as employees when they served in the capacity of independent contractors. BOCES reported Sobota to the Retirement System from 1999 to present, allowing him to earn less than two years of service credit, and Gross from 1994 to 2002, allowing him to earn less than one year of service credit. Gross must repay the Retirement System $26,928 for excess pension payments made from August 2002 to July 2008.

Reitz, Sobota and Gross did not work set hours, BOCES did not supervise their work or control how their work was performed. They also did not have offices at BOCES. All three lawyers were employed by the Ferrara, Fiorenza, Larrison, Barrett & Reitz during their time at BOCES.

DiNapoli sent letters to the individuals involved advising them of his actions and of their right to an administrative hearing. The Attorney General’s office reached settlements with the law firms that employed Cannick, Fremgen, Reitz, Sobota and Gross.

DiNapoli’s office has now revoked membership or retirement service credit for 33 individuals. In March, DiNapoli announced strengthened regulations to provide clarification and guidance for local governments when they determine who is an employee.

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 518-474-0167.

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