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NEWS from the Office of the New York State Comptroller
Contact: Press Office 518-474-4015


Comptroller DiNapoli & A.G. Schneiderman Announce Arrest of Arizona Man For Theft of Over $100,000 in NYS Pension Benefits

John H. Eydeler, III Allegedly Stole Pension Benefits Intended for His Deceased Mother

August 15, 2016

New York State Comptroller Thomas P. DiNapoli and Attorney General Eric T. Schneiderman today announced the unsealing of an indictment charging John H. Eydeler III, 66, a resident of Glendale, Arizona, with grand larceny in the second degree, a class C felony. Eydeler is alleged to have stolen over $100,000 in pension payments from the New York State and Local Employees Retirement System intended for his deceased mother, Dorothy Eydeler, a retired nurse who died in October of 1998.

“After his mother passed away, Mr. Eydeler hid her death and stole more than $100,000 in pension payments,” said Comptroller DiNapoli. “Through our Operation Integrity partnership with Attorney General Schneiderman, our investigation expanded to three states and led to Mr. Eydeler's arrest in Arizona.”

“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,” said Attorney General Schneiderman. “Comptroller DiNapoli and I will continue our partnership to protect the state pension system from theft and abuse.”

According to investigators, Eydeler concealed his mother’s death in 1998 from the New York State and Local Employees Retirement System. As a result, between October 1998 and January 2010, over $100,000 in pension benefits were deposited into a bank account in the name of Eydeler’s deceased mother. Eydeler then allegedly diverted these monies to himself by claiming to have power of attorney for his mother and writing checks to himself every month for over a decade. Eydeler allegedly altered his scheme to conceal the theft, and used the monies to prop up a small automotive repair business that he owned in Glendale, Arizona.

Eydeler was arraigned today on the indictment by the Honorable Stephen W. Herrick in Albany Supreme Court, and entered a plea of not guilty. The defendant was released on recognizance. The next court date is scheduled for August 30. If convicted, Eydeler faces up to five to fifteen years in state prison.

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

The charges are accusations and the defendant is presumed innocent unless and until proven guilty.

The Comptroller’s investigation was conducted by the Comptroller’s Division of Investigations, working with the New York State and Local Retirement System.

The Attorney General’s investigation was conducted by Investigator Mitchell Paurowski and Deputy Chief Antoine Karam. The Investigations Bureau is led by Chief Dominick Zarrella.

This case is being prosecuted by Assistant Attorney General John R. Healy of the Criminal Enforcement and Financial Crimes Bureau. The Criminal Enforcement and Financial Crimes Bureau is led by Bureau Chief Gary T. Fishman and Deputy Bureau Chief Stephanie Swenton. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.

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 protected], or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 14th Floor, 110 State St., Albany, NY 12236