New York man accused of watching for passing semi trucks and submitting fake accident claims in $400K scheme
A New York man was recently arrested in connection with a $400,000 scam targeting trucking and insurance companies.
Poughkeepsie resident Michael McMahon, 69, was arrested on May 7, 2026, on three counts of mail fraud.
Officials say that between December 2020 and December 2025, McMahon took part in a scheme that involved him parking his vehicle and waiting for a semi truck to pass by. McMahon would then submit a fake accident claim, often under a false name, naming a fictitious auto repair shop and providing a fraudulent invoice to the trucking company or the carrier’s insurance company, authorities allege.
The scheme ultimately brought in $400,000, prosecutors said.
McMahon was arraigned on May 12 in Albany and released on a $200,000 secured bond.
McMahon served 51 months in prison for a similar scheme carried out between 2006 and 2011 that netted around $80,000.
“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, 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,” said U.S. Postal Inspection Service New York Division Inspector in Charge Ketty Larco-Ward.
The case was investigated by the United States Postal Inspection Service (USPIS).