A Port Jervis man pleaded guilty on July 31 to the theft of more than $42,000 in workers compensation benefits intended for his dead mother.
New York State Inspector General Lucy Lang announced the guilty plea by Randi L. Magpie, 31.
Magpie was arrested on Feb. 6, following a multi-agency investigation led by the inspector general’s office.
Lang said Magpie pleaded guilty to one count of third-degree grand larceny, a felony, and one count of petty larceny, a misdemeanor, before Orange County Court Judge Richard J. Guertin.
Lang said Magpie will serve one year of probation and make restitution in the amount of $42,000.
If he successfully completes that, he will be permitted to withdraw his guilty plea to the felony charge and will be sentenced on the remaining misdemeanor.
Magpie’s mother, Linda Chaney, died on April 1, 2022.
At the time of her death, she had been receiving weekly wage replacement benefit checks in the amount of $487.35 as a result of a workplace injury she suffered in 2012. Between April 18, 2022, and December 19, 2023, NJM Insurance Company, unaware that Chaney had died, continued to issue benefit checks.
A total of 43 checks, totaling $42,399.45, were deposited in a personal bank account belonging to Magpie.
In the summer 2023, NJM attempted to reach Chaney numerous times to confirm her continued eligibility for the benefits, but was unable to do so.
On Aug. 21, 2023, a representative of NJM spoke to Magpie. Instead of acknowledging his mother’s death, Magpie told NJM she was out of town and provided a new mailing address — his own in Port Jervis — to which future checks should be sent.
On Dec. 15, 2023, NJM became aware of Chaney’s death, obtained a death certificate to confirm the date, and notified the state inspector general’s office.
“This case represents a deliberate and calculated effort to exploit the workers compensation system for personal gain,” Lang said in a statement issued by her office. “Such conduct will not be tolerated, and this plea should serve as a clear message that fraud against public benefit systems carries serious consequences.”
Magpie’s attorney, Jacob Louis Johnson, could not immediately be reached for comment.
Mike Randall covers breaking news for the Times Herald-Record and the Poughkeepsie Journal. Reach him at mrandall@th-record.com.
This article originally appeared on Times Herald-Record: Port Jervis man pleads guilty to stealing $42K in compensation checks for dead mother
Reporting by Mike Randall, Middletown Times Herald- Record / Times Herald-Record
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