Woman given 2-year term in federal benefits theft

She is last of 17 people sentenced in six-year, $4 million fraud scheme

June 01, 2005|By Matthew Dolan | Matthew Dolan,SUN STAFF

The last person to be sentenced in a broad investigation into death benefits stolen from the federal government has been sentenced to two years in prison, prosecutors in Maryland said yesterday.

U.S. District Judge Peter J. Messitte in Greenbelt sentenced Marjorie A. McGaha, 61, of Washington after she pleaded guilty to stealing more than $430,000 in survivor's annuity payments from the Civil Service Retirement Trust Fund.

McGaha was the last of 17 people to be sentenced in a six-year scheme that involved the fraudulent payment of almost $4 million, according to the U.S. attorney's office in Maryland.

According to court papers, McGaha conspired with two former Office of Personnel Management employees - Agatha Malloy of Indian Head and Anita Cary of Suitland - to receive stolen funds in exchange for bribes to government employees.

McGaha sought an annuity as a survivor of a federal employee but was not eligible because her common-law husband never designated her as a beneficiary, according to court papers.

In July 1997, Malloy and Cary fraudulently gave McGaha a monthly survivor's annuity and retroactive annuity payments dating to 1978, according to court papers.

The payments to McGaha totaled $430,312.02. She paid about $170,000 in kickbacks to Malloy and Cary, according to prosecutors.

Malloy has been sentenced to 10 years in prison. Cary received a five-year sentence.

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