BROOKLYN, NY — A former New York City retirement system employee pleaded guilty on Wednesday to stealing more than $624,000 from two retirees over a nearly three-year span, using his position to divert pension payments for personal use, including luxury purchases and cash withdrawals.
Gregory Mathieu, 41, of Canarsie, Brooklyn, admitted in Brooklyn Supreme Court to first-degree corrupting the government. As part of a plea deal, he faces a sentence of one to three years in prison and will be required to repay $511,115.61. The remaining $113,000 has already been recovered by the New York City Employees’ Retirement System (NYCERS).
Key Points
- Gregory Mathieu stole $624,000 in pension funds from two retirees while employed at NYCERS.
- He spent the money on luxury goods, vacations, and large cash withdrawals.
- Mathieu pleaded guilty and will be sentenced in September, with restitution ordered.
Authorities said Mathieu exploited his role as an Associate Retirement Benefits Examiner at NYCERS between February 2021 and January 2024. During that time, he reactivated pension payments for a deceased Department of Sanitation supervisor, receiving both retroactive and monthly payments totaling approximately $377,000.
In a separate theft, Mathieu diverted about $199,000 in pension payments meant for a 75-year-old retired Associated Railroad Signal Specialist from the MTA/NYC Transit Authority. The funds were spent on high-end retail items including a $2,500 purchase at Louis Vuitton and $1,500 at Chanel, as well as a $19,000 vacation and $429,000 in cash withdrawals.
“This defendant shamelessly exploited his position of public trust,” said Brooklyn District Attorney Eric Gonzalez. “His guilty plea is a clear admission of that betrayal.” Department of Investigation Commissioner Jocelyn E. Strauber added, “He has acknowledged that he abused his position for his own financial gain.”
Background on the pension fraud scheme
Mathieu, a 15-year NYCERS employee, is expected to formally resign by May 30. His sentencing is scheduled for September 17.
The investigation was conducted jointly by the Brooklyn District Attorney’s Office and the New York City Department of Investigation, with NYCERS assisting in tracking and recovering a portion of the stolen pension funds.
According to court filings, Mathieu used internal system access to override account suspensions and reroute pension disbursements into accounts under his control. The scheme was uncovered through routine audits and an internal review initiated by NYCERS.
City officials stated that reforms have since been implemented to prevent further breaches in the pension system.
Luxury purchases and falsified records marked a $624K betrayal of New York’s pension system.
