Breaking Trust: How a Stolen IRS Refund Led to a USPS Mail Theft Bust
When the theft of a $14,000 IRS refund check from the mail triggered an investigation, what our special agents uncovered would be the first clue that would unravel a criminal network exploiting one of the country’s most trusted government agencies: the U.S. Postal Service.
In December 2022, a postal customer in the nation’s capital filed a complaint with our Hotline alleging his mail carrier had stolen and fraudulently cashed such a check. As public servants, postal employees are sworn to protect the U.S. Mail. However, some turn violating the public’s trust into a high-risk side hustle.
The complainant was right: Our special agents found strong evidence supporting the allegation, but there was more: dozens and dozens of checks were stolen and cashed from at least 40 mail routes serving Washington, D.C. Seeing that many of the fraudulently negotiated notes were Treasury checks, our agents partnered with Treasury Inspector General for Tax Administration and the Washington, D.C. Metropolitan Police Department. Investigators first found the mail carrier had fraudulently deposited almost 100 checks into accounts he controlled. They also found he paid at least two coworkers to help with the scheme.
As it was unfolding, the ringleader withdrew over $250,000 and spent more than $90,000 of that at gentlemen’s clubs in the D.C. area. He also transferred over $120,000 of the stolen funds to various individuals, including his postal co-conspirators. Investigators found the accomplices had received thousands of dollars in transfers, although their statements to our special agents contradicted this. One employee claimed to have received only $2,000 for a favor to the ringleader and denied any involvement in the scheme. The other employee confessed she had stolen one check and received a one-time payment for it.
This investigation should serve as a warning to any postal employee who thinks they will get away with stealing checks from the mail as a side hustle. You will be caught and prosecuted. Our agency strongly believes in our mission of protecting the security of America’s mail. We are prepared to investigate postal employees who violate or threaten the proper delivery of the mail.
– Tammy L. Hull,
Inspector General,
U.S. Postal Service
In March 2023, investigators executed search warrants at the ringleader’s home and on his personal and business digital records. A federal warrant was issued for one of his bank accounts, which led to the seizure of over $400,000. Investigators estimated the total losses for the fraudulently negotiated checks to be more than $1.6 million.
A few months later, our special agents arrested and indicted the ringleader on 21 criminal charges. He went to court and was found guilty on all 21 counts, including conspiracy to commit theft of mail and bank fraud, and theft of mail and bank fraud. He later received a sentence of five and a half years in federal prison as well as forfeiting the assets seized during the investigation.
If you suspect or know of mail theft involving Postal Service employees or contractors, please report it to our Hotline.
For further reading:
Department of Justice (via uspsoig.gov), Former Postal Worker Charged With Stealing Checks from the U.S. Mail | Office of Inspector General OIG, Former Postal Worker Stripped of Citizenship, Sentenced to 66-Months in Prison, for Stealing $1.6 Million from the U.S. Mail | United States Department of Justice