| ALBANY, NY – New York State Inspector General Lucy Lang announced the July 31, 2025, guilty plea of Randi L. Magpie in connection with a fraudulent scheme in which he illegally collected more than $42,000 in workers’ compensation benefits issued to his deceased mother. Magpie, of Port Jervis, was arrested on February 6, 2025, following a multi-agency investigation, led by the Offices of the New York State Inspector General. Magpie, who pled guilty before the Hon. Richard J. Guertin to one count of Grand Larceny in the Third Degree (Class D Felony) and one count of Petit Larceny (A Misdemeanor), will serve one year of probation and make restitution in the amount of $42,000, upon the successful completion of which he will be permitted to withdraw his felony plea and will be sentenced on the remaining misdemeanor. The criminal scheme underlying the arrest and plea dates back to the death of Magpie’s mother, Linda Chaney, on April 1, 2022. At the time of her death, Chaney had been receiving weekly workers’ compensation wage replacement benefits of $487.35 as a result of a workplace injury sustained 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, amounting to $42,399.45, were deposited into a personal bank account belonging to Magpie. In the summer of 2023, NJM attempted to reach Chaney numerous times to confirm her continuing eligibility but was unable to do so. On August 21, 2023, a representative of NJM spoke with Magpie who, rather than acknowledge his mother’s death, falsely claimed to NJM that his mother was merely “out of town,” and provided a new mailing address in Port Jervis – 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 revealed that each of the 43 checks sent by NJM after the date of Linda Chaney’s death were deposited into Magpie’s personal bank account. Each of the checks contained a forged signature of Linda Chaney, with 41 also bearing Magpie’s own signature beneath. “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.” “My office remains committed to combating frauds that ultimately hurt taxpayers’ wallets, such as workers’ compensation fraud,” said District Attorney David M. Hoovler. “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.” Inspector General Lang thanked the investigative team, including Investigative Auditor Kirsten Carroll, Deputy Chief of Investigations Gary Waters, Chief of Investigations Sherry Amarel, and Attorney-in-Charge for Workers’ Compensation Fraud Bryan Richmond. IG Lang also expressed her gratitude to Orange County District Attorney David Hoovler, Orange County Supervising Assistant District Attorney Tanja Beemer, and the Orange County Sheriff’s Office for their partnership in the prosecution of this matter. |
