USPS Financial Crimes

Supervisor was issued a 7-day suspension for leaving a Postal Service Voyager Card at the service station

The OIG initiated an investigation into suspicious Postal Service Voyager credit card transactions at a Pennsylvania Post Office location, after being advised that excessive charges were discovered while reconciling Voyager card expenses. The reconciliation showed that the suspicious charges occurred at one particular service station that performed routine maintenance on the Postal Service vehicles. The investigation revealed that a Postal Service supervisor allowed the service station to physically retain the Voyager card for over a year and during that time at least two station employees conducted 48 fraudulent transactions totaling $21,171. Both service station employees admitted to the fraudulent use of the Voyager card and in October 2011 and November 2011, respectively, the two service station employees pled guilty to one count of theft by deception and one count of criminal conspiracy to theft by deception. The employees were sentenced to a maximum of 23 months home confinement, 2 years’ probation, and $21,912 in restitution. In February 2011, the Postal Service Vehicle operations management assistant received a 7-day suspension for failing to properly reconcile Voyager card statements. In May 2011, the supervisor was issued a 7-day suspension for leaving a Postal Service Voyager Card at the service station.

Highway contract route (HCR) supervisor in New Jersey sentenced to 5 years of probation

A highway contract route (HCR) supervisor in New Jersey was sentenced to 5 years of probation and ordered to pay $365,416 in restitution to the Postal Service for theft of government property and aiding and abetting in October 2011. Another HCR employee involved in the same scheme was previously sentenced in August 2011 to 5 years of probation and ordered to pay $335,972 in restitution. The OIG launched the investigation predicated on information it received on the contractor purchasing 17,251 gallons of fuel above the authorized amount in the contract. The OIG conducted surveillance and determined that one of the contractors used several Voyager cards at gas stations near his home to purchase fuel for his personal benefit. The employee admitted to using Voyager cards to make numerous unauthorized purchases of fuel for his personal use, sale to other persons at a discounted price, and for a towing business. As part of the scheme, the employee installed a large rubber bladder in his personal truck which held about 100 gallons of fuel. The employee informed the OIG that he had an agreement with his supervisor to purchase and resell large amounts of fuel utilizing the Voyager cards. The employee recorded consensually monitored conversations he had with the supervisor for the OIG. The supervisor eventually admitted to using Voyager cards to make numerous unauthorized purchases of fuel and purchases of cartons of cigarettes for his personal use, as well as affirming that he allowed the employee to use the Voyager cards for personal gain. The supervisor received thousands of dollars in cash payments and services from the employee.

New Jersey postmaster devised a scheme to embezzle Postal Service funds

A New Jersey postmaster devised a scheme to embezzle Postal Service funds by offsetting the daily bank deposit with erroneous invoices for local transportation and office and custodial supplies. The postmaster used the funds to purchase money orders, which were used to pay personal expenses. On September 30, 2010, the postmaster resigned from the Postal Service, while under investigation. A year later, the former New Jersey postmaster pled guilty in federal court to misappropriation of Postal Service funds and was sentenced to 6 months of home confinement, 4 years of probation and ordered to pay about $69,000 in restitution to the Postal Service.

Former California sales and service associate (SSA) convicted

A former California sales and service associate (SSA) was convicted in October 2011, on one count of theft of public money and seven counts of passing counterfeit U.S.  obligations, following a 3-day federal jury trial. During the investigation, which was conducted jointly with the U.S. Secret Service, the sales associate was observed on several occasions sorting, separating, and switching what appeared to be $100 bills from his cash drawer. Additionally, the associate was observed on several occasions placing a “window closed” sign on his counter, then proceeding to print Postal Service money orders without any customers present. The SSA issued and cashed the money orders in his name. In June 2011, the Postal Service issued the sales associate letters of demand (an invoice for the amount owed) totaling about $45,200, which was followed by an issuance of a Notice of Removal in August 2011. After the associate’s arrest in April 2011, the U.S. Secret Service seized and forfeited two of his luxury sports utility vehicles.

Manager in New York created fraudulent cleaning service invoices

An OIG investigation determined that a postal manager in New York created fraudulent cleaning service invoices and submitted them to the Postal Service, resulting in check disbursements that the postal manager intercepted and cashed. The postal manager also stole third-party customer checks from the mail and inappropriately cashed them for personal use. OIG agents determined that the postal manager stole about $227,000, over a 3-year period. The postal manager admitted he intercepted and cashed Postal Service customer checks and also created fraudulent custodial cleaning services invoices, submitted them to the Postal Service for payment, then cashing the checks to use on personal expenses. As a result of the investigation, the postal manager resigned from the Postal Service in November 2010. A year later, the former New York postal manager pled guilty in federal court to misappropriation of Postal Service funds. Sentencing is pending.

PMR Pleads Guilty to Theft

An investigation by the OIG into an Oregon postmaster relief led to a guilty plea in December 2011. The former Oregon employee pled guilty in the Circuit Court of the State of Oregon to two counts of theft in the first degree. The former employee was sentenced to 24 months supervised probation, 3 days incarceration, and $6,379 in restitution to the Postal Service for kiting Postal Service money orders to conceal her embezzlement of Postal Service funds through the issuance of money orders without remittance. The former employee admitted to embezzling Postal Service funds and kiting money orders. She resigned in lieu of removal due to the OIG investigation.

OIC Pleads Guilty

In December 2011, a former Missouri officer in charge pled guilty to four counts of embezzlement of money orders and was sentenced to 5 years of probation and ordered to pay about $11,200 in restitution to the Postal Service. The investigation revealed the employee kited 155 postal money orders in the amount of about $52,500. The employee admitted using postal funds to pay vendors at a restaurant she operated with her son. The Postal Service removed the worker in March 2011.

Sales and service associate in Puerto Rico pleads guilty

A sales and service associate in Puerto Rico pled guilty in March 2012 in federal court to one count of embezzlement of postal funds. He was sentenced to serve 24 months of probation and ordered to pay $6,436 in restitution to the Postal Service. The investigation determined that the sales associate improperly voided about $6,436 in valid retail merchandise and stamp sale transactions in Postal Service registers to steal money for his personal use. The associate admitted he voided legitimate register transactions to help make up for cash drawer shortages.

2 Responses to "USPS Financial Crimes"

  1. What must be acknowledged and investigated is these same people who have no integrity have had other employees fired to cover up their own criminal activities (personal gain). Collusion / Terrorism is responsible for the total destruction of entire American families (Postal Holocaust). The USPS only seems to do something when it aides their goal to downsize (reduction in force) not to right the wrongs in the Postal Holocaust (Collusion / Terrorism). see USSC 99-565 & supplement

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