A Port Jervis man has admitted to fraudulently collecting more than $42,000 in workers’ compensation benefits meant for his deceased mother, following a multi-agency investigation led by the New York State Inspector General’s Office.
Randi L. Magpie, who was arrested on February 6, pled guilty on July 31 before Orange County Court Judge Richard J. Guertin to Grand Larceny in the Third Degree, a Class D Felony, and Petit Larceny, a misdemeanor. Under the terms of his plea, Magpie will serve one year of probation and repay $42,000 in restitution. Upon successful repayment, he will be allowed to withdraw his felony plea and be sentenced on the remaining misdemeanor charge.
The fraudulent scheme dates back to April 2022, when Magpie’s mother, Linda Chaney, passed away. Despite her death, NJM Insurance Company continued to issue weekly benefits of $487.35 for a 2012 workplace injury. Between April 18, 2022, and December 19, 2023, Magpie deposited 43 checks totaling $42,399.45 into his personal account. Records showed he forged his mother’s signature on each check, with 41 also bearing his own.
When NJM attempted to verify Chaney’s eligibility in the summer of 2023, Magpie falsely claimed she was “out of town” and provided his own mailing address to continue receiving checks. The scheme unraveled in December when NJM obtained Chaney’s death certificate and alerted the Inspector General’s Office.
“This case represents a deliberate and calculated effort to exploit the workers’ compensation system for personal gain,” said New York State Inspector General Lucy Lang. “Such conduct will not be tolerated, and this plea should serve as a clear message that fraud against public benefit systems carries serious consequences.”
Orange County District Attorney David Hoovler commended the collaborative investigation and pledged continued vigilance against public benefit fraud. “The prosecution of these cases is most successful when agencies work collaboratively with each other,” Hoovler said.
Inspector General Lang extended her thanks to the investigative team and partners at the Orange County District Attorney’s Office and Sheriff’s Office for their work on the case.
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