NY AG: St. Clare’s Hospital Leadership Faces Trial for Pension Fraud

New York – In a groundbreaking move, New York Attorney General Letitia James has kicked off the trial against the Roman Catholic Diocese of Albany and its leadership at St. Clare’s Hospital for a stunning act of pension fraud. The trial, which commenced today, centers on allegations that the hospital leadership failed to adequately fund, manage, and protect their employees’ hard-earned pensions.

“No one should ever bear the financial and emotional toll of losing their retirement,” stated Attorney General James. “St. Clare’s Hospital’s leadership has robbed hundreds of nurses, social workers, lab technicians, and other dedicated employees of their well-deserved pensions after years of loyal service.”

The lawsuit filed by AG James in May 2022 accused the Diocese, its bishops, senior executives, and St. Clare’s Corporation of violating fiduciary duties under New York law. The charges include failing to secure the employees’ pensions, making no contributions to the pension plan for all but two years between 2000 and 2019, and concealing the collapse of the pension plan from vested workers.

In May 2025, a judge rejected the Diocese’s and other defendants’ motions to dismiss the case before trial. AG James is seeking to hold the responsible parties accountable and recover the lost pensions for the former hospital staff.

The trial, presided over by Judge Vincent Versaci of the Supreme Court of the State of New York in Schenectady County, marks a pivotal moment in this legal battle. The victims of this fraud have waited years for justice, and today’s opening statements are a significant step towards that goal.