ALBANY, N.Y. -- Attorney General Andrew Cuomo said, "It is chronic, it is widespread."
State Attorney General Andrew Cuomo announced more details of the investigation into New York attorneys who may have improperly taken state benefits.
"In some ways, it's more insidious than just a single bad act," said Cuomo.
His office claims at least 12 attorneys working at Capital Region law firm Girvin & Ferlazzo over 20 years took benefits as if they were full-time state workers. One - Maureen Harris - left the firm in 2006 and is now the state commissioner for the state's Public Service Commission.
Last month we told you about an investigation by the Attorney General into attorneys who may have been double-dipping for state benefits by working for more than one school district as if they were employees. Now, our Steve Ference reports on the latest in the investigation that involves some Capital Region attorneys.
Special Deputy Attorney General for Public Integrity Ellen Biben said, "To the Girvin firm, participation in the New York State pension system was a perk of partnership, rather than a benefit earned through actual state employment."
Cuomo's office said Harris will give up those benefits and pay $50,000. Hodgson Russ in Buffalo also reached a similar financial deal and will end its agreements with five BOCES from Monroe County to Buffalo.
"We're talking about lawyers who were getting paid to know the law," said Cuomo.
But some local taxpayers may have sort of benefited. Because of the arrangements, some BOCES may have actually received more reimbursements from the state for having such an agreement. Therefore the local taxpayers may have saved a few bucks. But still, the state overall was paying that money, so the state taxpayers ended up footing the bill.
But a partner at Girvin & Ferlazzo issued a statement saying New York was never clear that the practice was illegal.
"Girvin & Ferlazzo has provided the school districts participating in the shared services agreement in HFM BOCES full and complete negotiations services for any compensation received by this firm...The rules and regulations covering the area of employment in this area are at best confusing and not universally applied. Our hope is that the review by the Attorney General and Comptroller will result in clarity for the future to guide our clients and all municipal entities. Our firm continues to cooperate with the Attorney General in his review. We do this because we have done nothing wrong."
While Cuomo disagrees, he also said the investigation could turn up hundreds of attorneys who may have illegally taken benefits.
Cuomo said, "You're looking at 10,000 governments in the State of New York. In many ways, this is the public integrity version of death by 1,000 cuts."