Syracuse Area Woman Sentenced To Ten Months in Prison For Theft Of Pension Funds

SYRACUSE, NEW YORK – Lorraine Lorini (56), of Nedrow, New York, was sentenced today in federal court in Syracuse to serve 10 months in prison for her theft of government money in connection with her fraudulently obtaining pension benefits in her deceased mother’s name.  In addition to the 10-month prison sentence, Senior United States District Judge Frederick J. Scullin, Jr. ordered Lorini to pay $30,074.80 in restitution to the Pension Benefit Guaranty Corporation (PBGC) and directed her to serve a three (3) year term of supervised release following her release from prison. The sentence was announced by United States Attorney Richard S. Hartunian and Robert A. Westbrooks, Inspector General of the Pension Benefit Guaranty Corporation (PBGC).

In previously filed court documents, Lorini admitted that she applied for and received pension benefits on behalf of her mother, who was deceased. The funds were paid by PBGC, an independent agency of the United States that acts as a guarantor of pension plans. As part of her guilty plea, Lorini admitted that she collected pension benefits in her deceased mother’s name for several years and retained this money for her own use, knowing it was obtained by fraud.

Following the sentencing hearing, Inspector General Westbrooks stated, “The Office of Inspector General of the Pension Benefit Guaranty Corporation will continue to aggressively investigate those who illegally obtain pension benefits for which they are not entitled. These cases are critical to ensuring the integrity of the Pension Benefit Guaranty Corporation’s programs that protect the retirement benefits of more than 40 million American workers and retirees.”  U.S. Attorney Hartunian stated, “As was demonstrated here, the safeguarding of taxpayer money is among the first duties of good government and those who steal from federal programs risk prosecution and prison.”

This case was investigated by the Office of Inspector General for PBGC, and was prosecuted by Assistant United States Attorney Michael F. Perry.