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Post date: March 30 2017

A.G. Schneiderman And Comptroller Dinapoli Announce Felony Conviction Of Woman Who Stole Over $67K In Deceased Mother's Pension Benefits

News from Attorney General Eric T. Schneiderman

March 30, 2017

New York City Press Office / 212-416-8060
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Twitter: @AGSchneiderman



Tammy Banack Admits To Stealing Over $67K Pension Benefits Intended For Her Deceased Mother And Wrongfully Obtaining $19K In Welfare Benefits Through Onondaga County DSS

Banack To Repay Stolen Pension And Welfare Benefits

Schneiderman: Those Who Commit Pension Fraud Will Be Caught And Brought To Justice

ALBANY - Attorney General Eric T. Schneiderman and New York State Comptroller Thomas P. DiNapoli announced today the conviction of Tammy Banack, a resident of Kirkville, New York, of the crime of Grand Larceny in the Third Degree, a class D felony. Banack pleaded guilty today before Hon. Stephen J. Dougherty in Onondaga County Court in satisfaction of a five-count indictment handed up against her earlier this month charging her with stealing pension benefits issued to her deceased mother and fraudulently obtaining $19,000 in welfare benefits from the Onondaga County Department of Social Services.

“To exploit the death of a loved one for personal gain at the expense of hardworking taxpayers is reprehensible,” said Attorney General Schneiderman. “Today's conviction sends the message that those who commit pension fraud will be caught and brought to justice.”

As part of her plea today, Banack admitted stealing over $67,000 in pension benefits issued by the New York State and Local Employees Retirement System to her deceased mother, Rosemary Banack, between January 2010 and July 2015. Banack agreed to execute a confession of judgment in favor of the Retirement System for the pension money she stole, and also agreed to execute confessions of judgment in favor of the Onondaga County Department of Services and Fidelis Care, Inc., for welfare benefits she wrongfully obtained by concealing the stolen pension money. 

Ms. Banack tried to scam the pension fund by stealing more than $67,000 in benefits. She is now a convicted criminal. I will continue to protect the members and the assets of the New York State and Local Retirement System and work with Attorney General Schneiderman to catch anyone who attempts to steal benefits to which they are not entitled," said State Comptroller DiNapoli.

According to documents previously filed with the court, Banack’s father, Anthony Banack, was a New York State pensioner who retired in 1991. At the time of his retirement, Anthony Banack selected to received his pension as a Pop Up Joint Allowance Half, which provided him with a reduced pension benefit but allowed him to pass on pension payments to his wife, Rosemary Banack, at the time of his death. Anthony Banack died in 2004, and Rosemary Banack ultimately began to receive her share of monthly pension benefits via direct deposit to a joint bank account she held at Citizens Bank with Tammy Banack. 

Rosemary Banack died on December 31, 2009. Tammy Banack concealed Rosemary Banack’s death from Citizens Bank and the Retirement System, in order to maintain the joint bank account to which the pension benefits were issued. Tammy Banack then systematically accessed the account and withdrew the funds or spent them on herself as they were issued. All told, Banack stole over $67,000 in pension benefits until the Retirement System discovered her mother’s death in mid-2015.

Further, in November 2012, Banack applied for and wrongfully obtained Medicaid assistance with the Onondaga County Department of Social Services. Banack falsely underreported her monthly income to the Onondaga County Department of Social Services by concealing the approximately $1,000 per month in pension benefits she was taking both on her original application and in two subsequent re-certifications of eligibility for benefits. As a result, Banack wrongfully obtained over $12,000 in Medicaid payments and nearly $7,000 in managed care payments she was not actually entitled to from November 2012 through July 2015. 

Banack will be sentenced on June 15, 2017 to time served and five years’ probation, and will be ordered to repay the ill-gotten gains as imposed by the confessions of judgment. 

The case is the latest joint investigation under the Operation Integrity partnership of the Attorney General and Comptroller, which to date has resulted in dozens of convictions and more than $11 million in restitution. 

Attorney General Schneiderman and Comptroller DiNapoli thanked the Onondaga County Department of Social Services for its assistance.

Comptroller DiNapoli's investigation was conducted by his Division of Investigations working with New York State and Local Retirement System.

The case is being handled by Assistant Attorney General Benjamin S. Clark of the Criminal Enforcement and Financial Crimes Bureau. The Criminal Enforcement and Financial Crimes Bureau is led by Acting Bureau Chief Stephanie J. Swenton.

The Attorney General’s investigation was conducted by Investigator Joel Cordone and Supervising Investigator Richard Doyle under the supervision of Deputy Chief Antoine Karam. The Investigations Bureau is led by Chief Dominick Zarrella.