Fraud involving theft of checks from the U.S. Mail comes in various forms, from the small and simple to the extensive and complex. Whatever the shape or size, when a Postal Service employee is involved in the theft, the OIG will investigate. 

Image

One of the larger investigations we recently closed involved a case that started in Camden, NJ. Working with IRS criminal investigators, OIG special agents discovered that IRS refund checks — ultimately more than $500,000 worth — were disappearing from mail sent to addresses in the nearby Pennsauken township. As a result of OIG analysis, most losses could be traced to the route of a specific letter carrier for the area. 

Investigators discovered the carrier failed to deliver 15 refund checks, and when interviewed, the carrier admitted he’d been approached multiple times and offered cash to take IRS refund checks from the mail. The investigation subsequently uncovered an elaborate scheme involving multiple suspects (not USPS employees) who, using different delivery routes in the region and a network of co-conspirators, defrauded the U.S. Treasury of more than $10 million.

The ring leaders stole Puerto Rican citizens’ identities to file some 3,300 fraudulent tax returns claiming refunds were due and falsely stating the filers lived in the Pennsauken area. They then bribed Postal Service employees to steal the refund checks from the mail. They also provided phony IDs to other non-employees they had recruited to go to check-cashing establishments where employees who had been bribed would cash the checks.

Image

Most of the defendants pleaded guilty to various charges of fraud and theft of government funds. The city carrier received a sentence of six months’ home confinement and a second postal employee was removed. In addition to fraud and theft, one of the leaders pleaded guilty to witness tampering and received almost four years in prison. Another leader who opted for trial was found guilty of all 27 counts against her and sentenced to more than 13 years in prison. She was also ordered to pay $565,000 in restitution. 

These are public funds that were stolen. American taxpayers lose when it happens. If you have information about this kind of fraud involving USPS employees, please contact our Hotline. 

For further reading:

• Department of Justice (via uspsoig.gov), "Camden County Woman Sentenced to 159 Months in Prison for Role in Stolen Identity Refund Fraud Scheme"