New York clerk forced to give up pension after swindling $1mn from village funds

An upstate New York village clerk accused of embezzling over $1 million — equivalent to her town’s entire annual budget — will pay for it by relinquishing her pension.

Ursula Stone, 55, a former employee of Addison, is alleged to have stolen $1,171,362 in village funds over at least 19 years. This marks the first instance of a politician forfeiting their pension under New York’s anti-corruption law, state and county officials announced late last week.

"This case represents the most complete, and to be frank—shocking, breach of public trust I have encountered in 30 years as a Steuben County prosecutor," Steuben County District Attorney Brooks Baker said in an official statement. "The reality is that, but for some real heads-up detection work by members of the State Comptroller’s staff, it would still be ongoing."

Stone appeared in Steuben County Court on Thursday (Aug 1) and agreed to forfeit her $1,920 monthly pension, The Rochester Democrat and Chronicle reported.

New York passed a law in 2011 that allows judges to revoke or reduce the pensions of corrupt officials, though it initially excluded sitting lawmakers. In 2017, voters approved a measure to close this loophole, enabling the state to target the pensions of lawmakers regardless of when they were elected.

State Comptroller Thomas DiNapoli noted that Stone’s case is the first to employ this punishment in New York. Prosecutors must seek the pension forfeiture penalty and demonstrate that the individual knowingly committed a crime related to public office.

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"This case should send a clear message that those who dishonor their public office will face serious consequences," DiNapoli said.

Stone, 56, managed the village’s financial operations without oversight and allegedly stole numerous checks intended for the village. Authorities stated that she also granted herself unauthorised pay raises and issued checks for unauthorised health insurance buyouts from the village funds.

(With inputs from agencies)