State Comptroller DiNapoli & U.S. Attorney Announce Guilty Plea &
State Comptroller Thomas P. DiNapoli and United States Attorney Beth Drake
announced that former Albany resident Joseph F. Grossmann, 68, pled guilty
to Bank Larceny, a violation of Title 18, United States Code, § 2113(b),
and was sentenced to probation for three years, including one year of
home confinement. Grossmann was also ordered to pay $130,624 in restitution
to the New York State & Local Retirement System. Magistrate Judge
Paige J. Gossett presided at the hearing.
Former Albany Resident for Defrauding NYS Retirement System of $130,624
"Mr. Grossmann's determination to steal from the New York State & Local Retirement System with fake documents and other schemes has ended in his guilty plea and an order for restitution to the pension fund of $130,624," State Comptroller Thomas P. DiNapoli said. "Thanks to our partnership with the U.S. Attorney's Offices in New York and South Carolina, Mr. Grossmann is facing justice today."
Grossmann, who now resides in Lugoff, S.C. collected retirement benefits for his sister, a former New York state employee, even though she had died. Evidence presented established that between 2010 and 2015, he received approximately $130,624 over five years, none of which he was entitled to.
The case was originally prosecuted by the United States Attorney’s Office in the Southern District of New York. The case was transferred to South Carolina to accommodate the defendant’s health and living circumstances. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office handled today’s guilty plea and sentencing.
Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by filing a complaint online at email@example.com, or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 14th Floor, 110 State St., Albany, NY 12236. Review prior cases at http://www.osc.state.ny.us/investigations/index.htm.