WRGB News 6: Prosecutors say man waited roadside for trucks, then filed false claims under fake names

By: Felix Day

A Poughkeepsie man who previously went to federal prison for an insurance fraud scheme is now facing new federal charges after investigators say he ran a similar operation again, this time reportedly taking in more than $400,000.

69-year-old Michael McMahon of Poughkeepsie, was arrested at his home Thursday, May 7, on three counts of mail fraud, according to an announcement from First Assistant United States Attorney John A. Sarcone III and U.S. Postal Inspection Service New York Division Inspector in Charge Ketty Larco-Ward.

An indictment unsealed at the time of his arrest says that between December 2020 and December 2025, McMahon carried out a scheme to defraud trucking and insurance companies by submitting fake accident claims. Prosecutors say McMahon would park a vehicle by the side of the road and wait for a tractor-trailer to drive past, then submit a claim to the trucking company or its insurer, typically under a false name, along with a fake invoice from a fictitious auto repair shop. Authorities say he received over $400,000 through the scheme.

McMahon’s new case follows a prior federal conviction for what prosecutors described as a virtually identical fraud. In 2012, he was sentenced to 51 months in prison for a scheme carried out between 2006 and 2011 that obtained over $80,000. The new indictment says the latest scheme began after he completed his period of supervised release following that imprisonment.

McMahon was arraigned today in Albany before U.S. Magistrate Judge Daniel J. Stewart. He was released on a $200,000 secured bond and strict conditions.

Sarcone said,

McMahon committed a long-running insurance swindle between 2006 and 2011 and was imprisoned for it by a federal judge in this District. As alleged in the indictment, he then started up again and stole five times as much. I thank USPIS for its work in detecting this fraud, and I assure the community that my Office will seek stiff penalties against McMahon to punish this unashamed recidivist conduct, recoup the losses to his victims, and deter future fraudsters.

Larco-Ward said the case underscores the role of the Postal Inspection Service in targeting fraud schemes that rely on the mail.

This investigation, which utilized fraudulent documents sent through the U.S. mail, highlights the commitment of the U.S. Postal Inspection Service to dismantling criminal schemes that seek to profit through mail and insurance fraud. Postal Inspectors will continue to combat fraud that impacts the people we serve wherever and however it occurs.

The charges in the indictment are accusations, and McMahon is presumed innocent unless and until proven guilty.