Barred from benefit: Comptroller strips 15 years of pension credits from lawyer

Attorney Carol Hoffman, who was improperly listed as an employee of four Nassau County school districts, has had her membership in the state retirement system revoked, state Comptroller Thomas DiNapoli said yesterday.

While she has not collected any pension benefits, Hoffman will lose nearly 15 years of credits, officials said.

Hoffman, 57, a partner in the Garden City law firm of Jaspan Schlesinger Hoffman LLP, is on leave from the firm until December and will then retire, said partner Steven Schlesinger.

Hoffman's attorney, Kevin Keating, said Hoffman would appeal the comptroller's decision.

"It's important to note that Carol Hoffman never received any pension, health benefits or other fringe benefits," he said. "These issues will be appropriately resolved at a comptroller's hearing."

DiNapoli said his office's probe of attorneys improperly listed as employees on school district payrolls is continuing. The investigation began in the wake of Newsday stories showing that a number of Long Island attorneys had improperly received state pension credits after being listed as school district employees.

"Our review will not stop until we are sure there are no individuals improperly taking advantage of the retirement system," he said.

DiNapoli said the districts - Bethpage, Lawrence, East Rockaway and Plainedge - improperly reported Hoffman as an employee for three to six years each, when she was an independent contractor. Two of the districts also paid retainer fees to her law firm.

Newsday has reported that Hoffman also solicited two other Nassau school districts in writing to be put on their payrolls, but was turned down.

Yesterday's action against Hoffman - and a Buffalo attorney who must repay $24,077 to the retirement system - brings to 35 the number of memberships in the pension system the comptroller's office has revoked since beginning its investigation.

Hoffman and the Buffalo attorney, Phillip Brothman, are both under investigation by state Attorney General Andrew Cuomo, officials said.

Newsday reported that, in an August 1998 letter to then-Roslyn Superintendent Frank Tassone, Hoffman asked to be listed as a part-time employee at that district so that she could qualify for pension credits. In the letter she said the "practice is approved by the state." In July 2001, she asked the same of Glen Cove schools. Both districts turned her down.

Records show that Roslyn paid Hoffman's firm $2.2 million in retainer fees from 1999 to 2004.

Roslyn is also suing Hoffman and her firm, alleging that she failed to advise the district to notify law enforcement after the district uncovered evidence of embezzling in 2002.

Records show that Hoffman was listed as a full-time employee of the Bethpage schools from 1999 to 2003, with a top salary of $40,000, while the district paid $847,106 in legal fees to her firm. Plainedge reported her as full time from 1983 to 1987 and Lawrence reported her as part time from 1991 to 1997, while also paying her firm legal fees.

The districts did not control or supervise Hoffman's work nor provide her with office space, DiNapoli's review found. She also did not work set hours or maintain time sheets at any of the districts.