Diocese of Albany Hit with $54.2M Judgment Over St. Clare’s Pension Fraud

New York – In a landmark victory for the elderly and their families, New York Attorney General Letitia James announced today that a Schenectady County jury has found the Roman Catholic Diocese of Albany liable in a $54.2 million judgment against St. Clare’s Hospital. The verdict penalizes the diocese and former leadership for neglecting the pension plan, which left 1,124 workers destitute upon retirement.

The jury concluded that bishops Howard Hubbard and Edward Scharfenberger, President Joseph Pofit, and former President Robert Perry breached their fiduciary duties. Over six years of mismanagement culminated in the pension fund’s collapse, devastating over 600 workers who had vested benefits.

‘This verdict is a victory for the countless St. Clare’s Hospital employees who were betrayed by those they trusted to manage their retirement,’ stated Attorney General James. ‘We will not tolerate the exploitation of workers, especially when it comes to their hard-earned pensions.’

The lawsuit filed by AG James in 2022 accused the diocese and its top brass of hiding the pension’s failure from employees. The diocese failed to make annual contributions for all but two years from 2000 to 2019, further exacerbating the crisis.

‘No one should be stripped of their retirement security,’ added James. ‘My office will continue to protect New Yorkers from such heartless abuse of power.’

The trial team led by Assistant Attorney General Diane Hertz and supervised by Chief of Enforcement Section Emily Stern secured the historic judgment, which will now be followed by a separate hearing to determine punitive damages.

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