WASHINGTON — New York state officials have indicted an Arizona man on charges he collected New York state pension benefits intended for his dead mother for more than 12 years, and a Florida man on charges that he collected benefits on behalf of his deceased brother for more than seven years.
The issue is important to insurers, especially in light of new insurance/unclaimed property laws and settlement agreements that prioritize unclaimed property reporting of life and annuity proceeds to the states over fraud prevention, according to Mary Jo Hudson, former director of the Ohio Department of Insurance and now a partner at Bailey Cavalieri in Columbus.
“Such losses should be monitored carefully,” she said.
John H. Eydeler III, 66, a resident of Glendale, Arizona has been charged with grand larceny in the Second Degree, a Class C felony, by the New York state attorney general and comptroller.
At Eydeler’s arraignment, he pleaded not guilty. If convicted, he would face “up to five to fifteen years” in state prison.
The indictment was announced by Eric T. Schneiderman, New York state attorney general and Thomas P. DiNapoli, state comptroller.
“When individuals illegally pocket pension funds that were intended for retirees, it harms all New Yorkers who count on their pension for a secure retirement,” Schneiderman said. “Comptroller DiNapoli and I will continue our partnership to protect the state pension system from theft and abuse.”