LI attorney loses state pension as probe continues

The New York State Comptroller's office has revoked the pension of another Long Island attorney and ordered him to pay back $82,209 to the state retirement system, officials said yesterday.

The action brings to 40 the number of people who have lost pensions or pension credits since April, when the comptroller - prompted by a series of Newsday stories that began in February - started a review of the retirement system.

George Lipp Jr., 80, formerly of Bay Shore, was improperly listed as an employee of the Babylon, Island Trees and Levittown school districts when he actually was an independent contractor, said Dennis Tompkins, a spokesman for Comptroller Thomas DiNapoli.

Auditors found that Lipp did not keep time sheets and did all his work from his private law office. Moreover, the districts did not supervise his work, Tompkins said.

Lipp, reached yesterday at his home in Venice, Fla., declined to comment on the comptroller's action. "I certainly do not care to comment to Newsday. You guys started it on Feb. 15, and the whole thing is ridiculous," he said.

Lipp was referring to a Newsday story about private attorney Lawrence Reich, who was falsely reported as a full-time employee of five school districts at the same time. As a result, Reich was able to retire with a pension of nearly $62,000 a year and health benefits for life.

The story prompted federal, state and local investigations. Since April, DiNapoli's office has reviewed the files of every attorney enrolled in the state retirement system. To date, the office has revoked pensions or rescinded pension credits of 39 attorneys and one accountant statewide and demanded payment of more than $1.04 million.

Tompkins said the office is working with New York State Attorney General Andrew Cuomo to recover more money. Cuomo's office has mounted an aggressive investigation of pension abuse and has reached settlements totaling more than $1.2 million.

"Every dime put back in taxpayer-funded coffers counts." DiNapoli said in a statement.

On Long Island, 10 attorneys and one accountant have lost pensions or pension credits, though several are challenging the comptroller's decision.

Lipp retired in 1983 with an annual pension of $9,321.

Levittown Superintendent Herman Sirois recalled that Lipp had done "a pretty good job for us," but added, "I would assume the state has done so [revoked his pension] on proper grounds. ... We have to follow the rules."