Son Stole Over $42K in Workers' Comp Benefits Intended For His Dead Mother

PORT JERVIS, NY — A fraud scheme was was uncovered years after began, and the consequences will be lasting.

NYS Inspector General Lucy Lang announced that Randi L. Magpie, of Port Jervis, pleaded guilty on July 31, in connection with a fraudulent scheme in which he stole over $42,000 in workers' compensation benefits issued to his dead mother.

He pleaded guilty to one count of felony third-degree grand larceny, and one misdemeanor count of petit larceny. Magpie will serve one year of probation and make restitution in the amount of $42,000, after which he will be allowed to withdraw his felony plea and will be sentenced on the remaining misdemeanor.

"This case represents a deliberate and calculated effort to exploit the workers' compensation system for personal gain," NYS Inspector General Lucy Lang said. "Such conduct will not be tolerated, and this plea should serve as a clear message that fraud against public benefit systems carries serious consequences."

The criminal scheme dates back to April 1, 2022, when Magpie's mother, Linda Chaney, died. At the time of her death, Chaney had been receiving weekly workers' compensation benefits of $487.35 due to a workplace injury she received in 2012. Between April 18, 2022, and December 19, 2023, NJM Insurance Company, which did not know that Chaney had died, continued to issue benefit checks. A total of 43 checks, totaling $42,399.45, were deposited into Magpie's personal bank account.

In the summer of 2023, NJM tried to reach Chaney several times to confirm her continuing eligibility, but was unable to do so.

On August 21, 2023, a representative from NJM spoke with Magpie, who falsely claimed that his mother was "out of town," and provided a new mailing address in Port Jervis, which was his own, for checks to be sent, further prolonging the scheme.

On December 15, 2023, NJM became aware of Chaney's death, obtained a death certificate to confirm the date, and notified the Inspector General's Office.

Bank records obtained by the Inspector General showed that each of the 43 checks sent by NJM after Linda Chaney's death were deposited into Magpie's personal bank account. The checks all had a forged signature of Linda Chaney, with 41 of them also bearing Magpie's signature beneath.

Magpie was arrested on February 6, after a multi-agency investigation led by the Offices of the NYS Inspector General.

"My office remains committed to combating frauds that ultimately hurt taxpayers' wallets, such as workers' compensation fraud," Orange County District Attorney David M. Hoovler said. "The kinds of fraud seen in cases like this one are uncovered by the dedicated work of law enforcement professionals and the prosecution of these cases are most successful when agencies work collaboratively with each other. I thank the New York State Inspector General for all the assistance they have provided on this case and other cases with our office, and pledge to continue the important work of safeguarding against the theft of public monies."