New York State Comptroller Thomas P. DiNapoli, Monroe County District Attorney Sandra Doorley and New York State Police Superintendent Steven G. James announced the arrest of a 68-year-old Rochester woman for allegedly stealing $12,973 in state pension payments sent to her deceased mother. The defendant, Karen Walsh, was arraigned in Monroe County Centralized Arraignment Court on a charge of grand larceny in the third degree before Judge Cook.

“Ms. Walsh allegedly tried to steal funds she was not entitled to from the state’s pension system,” DiNapoli said. “My office is committed to protecting the pension system, its members and their beneficiaries. My thanks to District Attorney Doorley and the New York State Police for their partnership in ensuring justice is served."

“The defendant abused the New York State pension system, which is a crime against the taxpayers of the State of New York and a slap in the face to all of the public servants who dedicated their careers to serving our community,” said Doorley. “These types of crimes are a betrayal to all of the hardworking taxpayers who reside in New York State. I want to thank the State Comptroller’s Office and the New York State Police for leading this investigation and sharing our commitment to take economic crimes seriously. We are fully prepared to prosecute this case and deliver the accountability New Yorkers deserve.”

“Theft from the state’s pension system is not just a financial crime, it’s a betrayal of public trust,” James said. “I commend the investigators from the State Comptroller’s Office and our members who worked closely with the Monroe County District Attorney’s Office to bring this case forward. The New York State Police will continue to support efforts to uncover fraud and hold those responsible accountable.”

Walsh’s mother, also of Rochester, received a monthly payment as the beneficiary of her deceased husband’s state pension. When she passed away in 2020, her pension payments should have stopped, but the pension system was not notified of her death until April 2022. The payments were then halted and DiNapoli’s office launched an investigation.

The investigation determined that after Walsh’s mother’s death, 18 direct deposits totaling $19,524 went to her bank account. Walsh allegedly stole $12,973 by withdrawing $4,333 from the account and transferring $8,600 to a second account in her mother’s name to which she also had access. She wrote checks from that second account, forging her deceased mother’s name and endorsing the back of the checks with her own signature, before depositing them into her own account. Walsh also used the second account in her mother’s name to make personal credit card payments, pay for home improvements and buy groceries.

Walsh is due back in court on July 1.

The charges filed in this case are merely accusations and the defendants are presumed innocent unless and until proven guilty in a court of law.

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 emailing a complaint to [email protected] or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.