By Jeff Lipton
While he was an attorney in private practice, Gilbert Henoch also worked for the East Meadow schools from 1980 to 1985, for which he has received pension credits from the New York State Employees' Retirement System (ERS). In addition, he served as a lawyer for the Hempstead School District from 1970 to 1996, where he was also improperly classified as an employee and received pension credits as well as health benefits, state officials said.
Henoch applied for pension benefits from ERS in 2003 and has so far received more than $50,000, officials said.
Under a settlement announced by state Attorney General Andrew Cuomo on June 3, in addition to returning the pension money, Henoch will end his membership in ERS, forfeit any future claims to pension benefits for the years he worked in East Meadow and Hempstead and give up any claims to employee contributions made to the pension system.
When reached at Henoch's law office for a comment, a spokeswoman said the attorney declined to discuss the settlement.
Cuomo has been investigating lawyers and law firms statewide for alleged fraud committed against the retirement system. His ongoing investigation of pension abuse has expanded to include more than 4,000 local governments and special districts as well as all 37 Boards of Cooperative Educational Services (BOCES).
No allegations of fraud were made in connection with the Henoch case.
"Systemic abuse in the public pension and benefits systems has wasted millions of taxpayer dollars," said Cuomo. "We will continue to examine school districts and BOCES throughout the state to ensure that taxpayer dollars are not being wasted by providing pensions to lawyers who are not state employees or other unwarranted perks and benefits. It may have been common practice for decades but it ends now, and I am working with leaders in the Senate and Assembly to pass legislation shutting down the abuses for good."
Lawmakers in the state Senate and Assembly joined Cuomo in announcing plans to introduce legislation that would end abuses in the public pension system.
Late last month, Cuomo held a public hearing with state lawmakers on Long Island to review some of his findings and to begin looking at potential solutions, including legislation, to end the abuse. "The Long Island public hearing provided critically important information we needed to develop comprehensive legislation that will address this problem," said Sen. Dean Skelos (R-Rockville Centre). "This legislation will prevent future abuses of the system and help restore the taxpayers' trust in our local school districts."
Tom Dunham, a spokesman for Skelos, said lawmakers were seeking to hammer out an agreement on legislation before the end of the month, when the legislative session ends. "This is an important issue and it's now getting bigger," said Dunham. "We're moving forward with significant momentum.
"We're not involved in the prosecution end of things," he added. "But we're looking in terms of legislation, making sure this will not happen again and putting in place more penalties in case someone does violate the law."
Assemblyman Harvey Weisenberg (D-Long Beach) said, "Rampant fraud and abuse exists in our public pension system and it needs to end. Thanks to the leadership of Attorney General Cuomo, some of the problems are beginning to come to a long-deserved end. I am pleased to be working with the attorney general and my colleagues in the Senate and Assembly on legislation that establishes a bright line standard for all attorneys, outside consultants, schools and local governments that will end public pension fraud and abuse."
Cuomo announced that his investigation was expanding to include the practice of school districts permitting employees to "double dip" - to collect both salaries and pensions simultaneously. The attorney general's office is examining whether this is a proper use of public funds, whether these practices and their implementation violate existing laws and regulations, and whether those laws need to be clarified. Cuomo urged anyone with knowledge of questionable arrangements between any BOCES, local government or school district and their outside professionals to
contact the Public Integrity Bureau at (212) 416-8090 or public.integrity@oag.state.ny.us.
Comments about this story? JLipton@liherald.com or (516) 569-4000 ext. 210.
