The Labor Department continued to make the monthly benefits payments for more than a year after the man's death before the scheme was uncovered, according to the charge.
Prosecutors want to take funds from her state retirement account to cover the loss.
Daugherty already is on probation. She pleaded guilty in January in Oklahoma County District Court to a felony bogus check charge. She paid $3,005 in restitution.
She worked at DHS from December 1979 to June 1985 and again from November 1986 to August 2011, a DHS spokeswoman said.
She was earning $41,618 per year at the time of her retirement.