Poughkeepsie Man Accused of Bizarre Scam That Netted Over $400K

A Hudson Valley man is accused of earning hundreds of thousands of dollars by simply waiting for tractor-trailers to drive past his parked car in Poughkeepsie.

Federal officials say 69-year-old Michael McMahon was arrested last week on charges connected to what they describe as a long-running insurance fraud scheme that stretched from 2020 through the end of 2025.

How the Brazen Scam Allegedly Worked

According to prosecutors, McMahon would allegedly park his vehicle and wait for a semi truck to pass by. Afterward, authorities say he would file a false accident claim against the trucking company or its insurance carrier, alleging the truck had damaged his vehicle.

Investigators allege the scheme was much more involved than just making a false complaint.

Officials say McMahon often used fake names, listed phony auto repair shops and even went so far as to submit fraudulent repair invoices in order to convince insurance companies the accidents were legitimate.

Over time, prosecutors say the scam brought in around $400,000.

Not the First Time McMahon Was Arrested for the Same Scam

What makes the allegations even more surprising is that authorities say this wasn't the first time McMahon had been caught doing something similar.

Federal prosecutors say McMahon previously served 51 months in prison after carrying out another insurance fraud scheme between 2006 and 2011. That earlier case reportedly netted about $80,000 before he was caught.

Now, officials say he allegedly went right back to the same type of scam after getting out of prison, only on a much larger scale.

McMahon was arraigned in Albany on May 12 and released on a $200,000 secured bond.

He's currently facing three counts of mail fraud.

Reaction From Officials

First Assistant United States Attorney John A. Sarcone III called the alleged conduct “unashamed recidivist conduct.”

The investigation was handled by the United States Postal Inspection Service, which says the case involved fraudulent documents that were allegedly sent through the U.S. mail.

USPIS New York Division Inspector in Charge Ketty Larco-Ward says the investigation  “highlights the commitment of the U.S. Postal Inspection Service to dismantling criminal schemes that seek to profit through mail and insurance fraud.”