Morgan was a NYSTRS pensioner who retired from the Pelham school district in 1991. At the time of his death in 2020, Morgan had no living beneficiary for his pension, and therefore NYSTRS payments should have ceased. However, NYSTRS was never notified of Morgan’s death and continued to make monthly payments of $3,497 to Morgan’s bank account.

Prior to Morgan’s death, Pesce acted as his caretaker, according to investigators. In his position as caretaker, Pesce was added to Morgan’s bank account and the deed of Morgan’s home in Pelham, the AG said. The OAG said their investigation found that beginning on March 17, 2020, less than a month after Morgan’s death, Pesce regularly withdrew funds from Morgan’s bank account, which he controlled.