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Local BOCES are not worried

PENSION PROBE: Area leaders say they've followed all rules
By KELLY L. REYNOLDS
TIMES STAFF WRITER
SATURDAY, APRIL 19, 2008
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State Attorney General Andrew M. Cuomo extended his pension fraud investigation Friday to include all 37 Boards of Cooperative Educational Services in the state, but local superintendents say they have nothing to worry about.

Subpoenas were issued for information about the nature of the employment between BOCES districts and professional consultants or lawyers, according to a press release.

Earlier this week, the investigation was extended to public school systems and lawyers in all forms of local government. The attorney general is looking for lawyers in private practice or on the payroll of a city or town who are also on the payroll of schools or BOCES districts and are receiving pension benefits.

"We have reason to believe some BOCES may have unclean hands in this situation and that there may have been financial benefits for the BOCES to list professionals as employees instead of as independent consultants," Mr. Cuomo said in the press release. "There appears to be a chronic fraud that has occurred across New York State for many years, and we will work until we get to the bottom of it."

Dr. Linda R. Gush, superintendent of the St. Lawrence-Lewis BOCES, said there is a lawyer on payroll, but he performs only part-time negotiation work. The lawyer, however, does draw pension benefits from the BOCES district.

"We feel we have gone about this the right way and we are not concerned," she said. "What we have is not anywhere near what has been reported from the districts who have committed a crime. We have already submitted the paperwork requested and we're waiting for the next step from the state. We feel we have done everything appropriately."

Mrs. Gush said she believes after the state reviews the paperwork the district will be able to "continue to operate as we are."

Jefferson-Lewis BOCES Superintendent Jack J. Boak said there are no lawyers on his payroll.

"There was a request for information about two weeks ago," he said. "They wanted to know if we had employed attorneys as BOCES staff that received pension benefits and also worked in the private sector. And, no, we never have. I think that this is a practice that may have been commonplace 30 years ago. It has not been at this BOCES, but it may have been in other areas of the state."

According to the press release, some lawyers have remained on BOCES or school districts' payroll for such extended periods of time that they have accumulated credits in the state Employees Retirement System. One attorney was listed on the payrolls of as many as seven BOCES and school districts in one year and may have collected more than $700,000 in pension benefits.

The attorney general's office is encouraging anyone with information about questionable arrangements between BOCES, local governments or school districts and outside professionals to contact the Public Integrity Bureau at (212) 416-8090 or by e-mail at public.integrity@oag. state.ny.us.

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