In a landmark case for New York’s anti-corruption efforts, Ursula Stone, a former village clerk from Addison, has agreed to forfeit her pension after being accused of embezzling over $1 million in village funds. This unprecedented move marks the first time a politician in New York has surrendered their pension under the state’s anti-corruption law.
Allegations of embezzlement
Ursula Stone, 55, allegedly misappropriated $1,171,362 over at least 19 years. Her actions, described as a severe breach of public trust, have left a significant impact on the village, which has an annual budget roughly equivalent to the amount she is accused of stealing.
“This case represents the most complete, and to be frank – shocking, breach of public trust I have encountered in 30 years as a Steuben County prosecutor,” Steuben County District Attorney Brooks Baker stated. He credited the discovery of Stone’s long-running scheme to the diligence of the State Comptroller’s staff.
Historic pension forfeiture
Appearing in Steuben County Court, Stone agreed to give up her monthly pension of $1,920. State Comptroller Thomas DiNapoli confirmed that this is the first instance of pension forfeiture under the anti-corruption measures established by New York’s ethics reform package in 2011 and expanded in 2017. DiNapoli emphasized the significance of the case, noting, “Though the law had never been wielded in court before, Stone’s case was a perfect fit because her alleged crimes impacted that village on a day-to-day basis.”
Lack of oversight and systematic theft
A 2022 audit by DiNapoli’s office revealed that Stone had been managing the village’s finances without oversight. She handled payroll, maintained leave records, and processed health insurance buyouts and unused leave payments—all without the necessary approvals from the mayor or other village officials. Authorities allege that she exploited this unchecked access for personal gain, including unauthorized raises, unchecked leave, and improper health insurance buyouts. Stone is also accused of stealing checks meant for the local school district and other village funds, converting them to bank checks and cashing them for personal use. The investigation, led by DiNapoli’s office, the New York State Police, and the Steuben County District Attorney’s Office, found that she had been cashing out unused vacation time since 2004, a privilege only allowed for retirees or resigned employees.
The forfeiture of her pension is seen as a pivotal step in holding public officials accountable
As the investigation progressed, Stone resigned in March 2023, but not before allegedly writing herself one last unauthorized check for $26,613, which the board managed to stop before she could cash it.
“For well over a decade, Ursula Stone took advantage of her position and the trust of Addison residents to systematically steal over a million dollars from her community,” DiNapoli said. “Thanks to the work of my office and our partnership with District Attorney Baker and the State Police, her crimes were uncovered, and she now faces the consequences of her actions.”
While Stone admitted to stealing over $100,000, she disputes the prosecutors’ figure of more than $1 million. The case has sent shockwaves through the small village of Addison, as residents grapple with the betrayal of trust and the significant financial impact of Stone’s actions. The forfeiture of her pension is seen as a pivotal step in holding public officials accountable and restoring trust in local governance.
