POUGHKEEPSIE, NEW YORK — A 69-year-old Poughkeepsie man has been arrested for allegedly running a five-year scheme in which he parked his vehicle, waited for semi-trucks to pass, and then submitted fraudulent accident claims under false names to trucking companies and their insurers — netting $400,000 and repeating conduct for which he had already served more than four years in federal prison.
Michael McMahon was arrested on May 7, 2026, on three counts of mail fraud. He was arraigned on May 12 in Albany and released on a $200,000 secured bond.
How the Scheme Worked
According to prosecutors, between December 2020 and December 2025, McMahon parked his vehicle and waited for semi-trucks to drive by. He would then submit fake accident claims — often under a false name — naming a fictitious auto repair shop and providing fraudulent invoices to the trucking company or its insurance carrier. The scheme generated approximately $400,000 over five years.
A Repeat Offender
McMahon previously ran a similar scheme between 2006 and 2011 that netted approximately $80,000, for which he served 51 months in federal prison. The current scheme generated five times as much.
“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,” said First Assistant United States Attorney John A. Sarcone III.
“This investigation 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,” said USPIS New York Division Inspector in Charge Ketty Larco-Ward.
The case was investigated by the United States Postal Inspection Service.
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