Hollister
– The state is suing a San Benito County man for allegedly
collecting nearly $400,000 in retirement benefits meant for his
mother, who died 17 years ago.
Hollister – The state is suing a San Benito County man for allegedly collecting nearly $400,000 in retirement benefits meant for his mother, who died 17 years ago.
California Attorney General Bill Lockyer, on behalf of the California State Teachers Retirement System, filed suit against William Prichard Jones this month in San Benito County Superior Court. The lawsuit alleges that Jones purposely neglected to inform CalSTRS that his mother, a former teacher named Elizabeth Jones, died in 1989 so he could continue to collect her pension.
“(William Jones) knew that in January, 1989 the monthly allowances deposited by CalSTRS after the death of Elizabeth Jones were funds to which Elizabeth Jones was not entitled … (William Jones) had no right, title or interest to the funds,” the suit states. “(William Jones) intentionally concealed from CalSTRS the death of Elizabeth Jones for the specific purpose of inducing CalSTRS to rely on the reasonable and justifiable belief that Elizabeth Jones was still alive.”
The lawsuit alleges that Jones had access to his mother’s bank account, and used it to collect $394,000 in CalSTRS pension payments between 1989 and 2002. Elizabeth Jones had retired from teaching in 1971. It was unclear on Monday where she had taught.
Since CalSTRS was unaware of Elizabeth Jones’s death, it continued to make payments to her bank account, according to the suit. She had a direct deposit account that did not require her to sign the checks before they were deposited, according to court documents.
Jones could not be reached for comment by press time on Monday.
CalSTRS Spokeswoman Brenna Neuharth said she could not comment on the case or the pension fund’s fraud detection efforts. She said she did not know why it took CalSTRS 13 years to discover that Elizabeth Jones died.
In 2003, CalSTRS discovered that Elizabeth Jones was dead and asked her bank to refund the $394,000. Bank officials, however, reported that the account had been emptied and closed. CalSTRS then asked Jones to return the money, but he refused, according to the suit.
CalSTRS is the largest teachers’ retirement fund in the United States with assets exceeding $129 billion. The state-run retirement system has more than 775,000 members, according to its Web site.
Hollister teacher Jan Grist called the alleged fraud “unfortunate.”
“Hallelujah that somebody caught it, but we need to ensure this kind of thing doesn’t keep happening,” she said. “It’s unfortunate CalSTRS can’t detect these cases sooner.”
In addition to paying back the nearly $400,000 that he allegedly collected fraudulently, the suit asks that Jones be ordered to pay interest on the $394,000 and the Attorney General’s legal costs in bringing the suit.
Officials from the Attorney General’s Press Office did not return phone calls Monday.
San Benito County District Attorney John Sarsfield said Jones could also face criminal charges, but said he would postpone acting on the case until the Attorney General had completed work on it. If Jones failed to report the $394,000 as income to the Internal Revenue Service, he could also face tax penalties, Sarsfield said.
Brett Rowland covers public safety for the Free Lance. He can be reached at 831-637-5566 ext. 330 or [email protected].
