Local News
FALLS SCHOOLS: District attorney awaits hearing for pension fraud issue
Gov. David Paterson has signed into law a bill that seeks to clamp down abuse of the state pension system by attorneys working for districts.
The bill was prompted by widespread abuse uncovered by state Comptroller Thomas DiNapoli’s office over the past several months, including in the Niagara Falls City School District.
In May, DiNapoli determined that attorney Maria Massaro had been functioning as an independent contractor for the Falls school district, but was still granted pensions entitled to district employees.
The new law takes several steps to prevent attorneys from “double dipping” — attorneys are now barred from simultaneously serving as a school district employees and independent contractors. School districts now face stricter requirements in disclosure of compensation, including annual reporting of employees receiving pensions under waiver provision and making annual expense information available to the public online or at a public library.
New civil and criminal penalties for violations of the law’s provisions and defrauding the pension system have been introduced as well.
“The legislation ... clearly defines for school districts and BOCES across the state when someone can be considered a public employee and not an independent contractor,” DiNapoli said in a written statement.
DiNapoli announced plans to launch a statewide investigation into lawyer compensation after discovering one Long Island attorney had been designated as an employee in five different school districts simultaneously and received pensions from each, despite functioning as an independent contractor.
Two months later, the probe landed in Niagara Falls, when the comptroller revoked Massaro’s pension. Auditors determined that she did not meet the criteria of a district employee, noting that Massaro did not have a district office and claimed to work 260 days, but submitted no time sheets.
DiNapoli also said the district paid the firm of Angelo Massaro, Massaro’s father, $95,000 as an independent contractor while Massaro worked at her father’s firm as a private employee.
District officials told the Gazette in May they disagreed with the comptroller’s findings. Since then, Massaro has moved into an office at the 66th Street administration building and continues to work with the district.
“She’s an employee, we’ve met all the criteria,” Superintendent Carmen Granto said Monday. “There’s 23 pieces of criteria for an employee and she meets all 23. She has no other income, she reports directly to me and she reports to work like any other employee.”
She is now collecting pensions under her affirmed role as a district employee. What Massaro is appealing is the revocation of her past pensions — Massaro has told the Gazette she has worked for the district since 1999, but DiNapoli stripped her of all retirement benefits in May.
According to the state comptroller’s audit released last week, which looked at district operations mostly between 2005 and 2007, Massaro was paid a salary $87,058 and health benefits worth $11,634. Since 2004, the district has paid her father’s law firm around $665,000.
“I filed the appeal and recently received a letter saying they received my request for an appeal,” Massaro told the Gazette, “and they will shortly be sending the date and time for an appeal hearing.”
To date, DiNapoli has revoked pensions or rescinded service credit for around 40 attorneys statewide and is in the process of collecting nearly $1 million in revoked pensions.
- Local News
-
-
Track set for new Falls train station
The project has been in various stages of discussion in Niagara Falls since the late 1980s.
-
Violante pleads the Fifth on DWI case
Niagara County District Attorney Michael Violante won’t explain why he allowed the daughter of an elected official to avoid a DWI charge last week in a rare plea deal in North Tonawanda City Court.
-
State judge defends court’s handling of case
State Supreme Court Judge Richard Kloch on Wednesday defended the decision of North Tonawanda City Court Judge William Lewis last week to accept a plea deal that spared the daughter of a North Tonawanda councilwoman a DWI trial.
-
District Attorney Michael Violante's statement on Donovan case
The following is an exact transcript of Niagara County District Attorney Michael Violante’s press release issued Wednesday in response to public criticism of a plea deal he offered to the daughter of North Tonawanda Alderwoman Nancy Donovan. Sara E. Donovan was arrested for DWI earlier this month after a one-car accident but instead pleaded guilty to a parking ticket and a speeding ticket.
-
Olive Garden plan approved for Falls
Niagara Falls is one step closer to getting an Olive Garden restaurant.
Members of the city’s planning board on Wednesday approved a site plan for a proposal to build a new Olive Garden near the main entrance to the Walmart plaza off Military Road in LaSalle. -
Questions remain over LaSalle library historic designation proposal
Members of the Niagara Falls Library Board want to discuss a few more details before they agree to lend their support to plans for designating the LaSalle Library building as an historic site.
-
Unusual Special Olympics event set for Seneca Niagara Casino
If everything goes as planned, those little things dangling over the edge of the Seneca Niagara Casino today will be brave volunteers raising funds for the Special Olympics.
-
N-W seeks voter approval for capital projects
The Niagara-Wheatfield School District is seeking voter approval for an $11 million capital improvement project.
-
Retirements could add up for Falls school district
The Niagara Falls School Board has adopted a retirement incentive program that could save the district more than $2 million over the next five years.
-
County to study windfarm impacts
The county Legislature on Tuesday OK’d creation of an ad hoc committee to look into questions about the benefits and costs to Niagara County of offshore windpower generation.
- More Local News Headlines
-
