On December 1, 2025 New York State Comptroller Thomas P. DiNapoli, Monroe County District Attorney Brian Green and New York State Police Superintendent Steven G. James announced that Karen Walsh, a 68-year-old Rochester woman, pleaded guilty to stealing $12,973 in state pension payments sent to her mother, whose death had not been reported to the pension system. As part of the plea, Walsh was ordered to pay full restitution upfront.
“Ms. Walsh tried to profit off of her mother’s death and defraud the state pension system,” DiNapoli said. “Now, through my partnership with law enforcement, she has been held accountable for her actions and must repay the money she stole. My thanks to D.A. Green and the New York State Police for their work with my office to ensure justice is served.”
“The defendant’s actions represent a misuse of the New York State pension system and, by extension, an offense against the citizens who fund it,” Green said. “Allowing such conduct would undermine the integrity of a system relied upon by countless public servants who dedicated their careers to their communities. I appreciate the thorough work of the State Comptroller’s Office and the New York State Police in this investigation that assisted in today’s resolution. The Monroe County District Attorney’s Office is committed to seeking justice and accountability for all who commit economic crimes against the residents of New York State.”
“Ms. Walsh used her mother’s death to her advantage and continued to inexcusably collect the pension meant to support her mother for the remainder of her life. We will continue to aggressively investigate any case involving financial corruption and those who take advantage of the pension system. I commend the Comptroller’s Office and the Monroe County District Attorney’s Office for their partnership in this investigation,” James said.
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, however, Karen Walsh failed to report the death to the pension system and instead pocketed the money. A total of $19,524 in pension payments went to Walsh’s account.
Walsh stole $12,973 by withdrawing over $4,000 from the account and transferring at least $8,000 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 pleaded guilty to petit larceny before Judge Van H. White in Rochester City Court.
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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 investigations@osc.ny.gov or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.