NYC Uncovers Pension Fraud Involving Dead Workers

NEW YORK (1010 WINS/WCBS 880/AP) -- New York City has uncovered at least 14 instances of pension fraud totaling $500,000 -- money that had been intended for dead city employees.

That's according to City Comptroller John Liu, whose office cross-checked pension payments with death records from 2007-2009.

A study announced Monday found 14 cases in which a dead retiree's pensions checks had been cashed or continued to be deposited in the dead retiree's account.

In one case, someone cashed 38 checks worth $140,000 using the driver's license of a pensioner who died in 2007, 1010 WINS' Stan Brooks reported.

LISTEN: 1010 WINS' Stan Brooks on the possible pension fraud

When the license expired in 2010, it was renewed and the person or persons continued to cash the dead retiree's checks.

The case has been referred to the city's Department of Investigation, which, along with the comptroller's office will hold a conference Tuesday to help city auditors root out fraud in tight fiscal times, WCBS 880's Marla Diamond reported.

LISTEN: WCBS 880's Marla Diamond on the possible pension fund scheme

"My office will continue to look for places where there could be possible waste and fraud and whenever necessary we will refer to agencies like the Department of Investigations or even the District Attorney," Liu said, "we cannot afford to waste money for any reason."

(The Associated Press Contributed to this report.)