A letter carrier in Cordele, GA, colluded with scammers to bilk the federal government out of $54 million in COVID-19 pandemic relief funds.
Agents from the Labor Department’s Office of Inspector General, or OIG, opened a case after uncovering a network of people who submitted fraudulent unemployment insurance claims to 46 state workforce agencies.
They learned that many of the reported business addresses could not be legitimate based on the number of stated employees and locations.
The unemployment claims were paid via debit cards sent through the mail. An anonymous tip came to the USPS Office of Inspector General’s hotline alleging that a Cordele mail carrier was colluding with the crime syndicate to intercept the debit cards and associated paperwork in exchange for cash.
Agents learned that the carrier told her co-conspirators of vacant addresses along her route. Many addresses she provided were unoccupied houses or empty lots.
In one instance, the syndicate filed for COVID relief by claiming more than 1,000 people worked at a “business” that was an empty lot.
Using information provided by the carrier, the enterprise created 35 fictitious employer accounts and filed more than 7,000 individual unemployment claims.
The carrier also obtained multiple Paycheck Protection Program loans for businesses that didn’t exist.
The Postal Service OIG agents arrested the carrier and then worked with federal, state and local law enforcement to apprehend 14 co-conspirators.
Prosecutors charged all 15 suspects; their crimes included conspiracy to commit mail fraud, aggravated identity theft and money laundering.
A federal court sentenced the now-former mail carrier to three years’ probation and $512,000 in restitution. The other 14 received 58 years of prison time in total and were ordered to pay the victims $45 million.
“When even one postal employee chooses to betray the American public’s trust, it harms our communities and undermines the dedication of thousands of honest workers who deliver the mail, especially in times of need,” said Tammy L. Hull, the Postal Service’s inspector general.
The USPS OIG recently highlighted this case on its website.
If you suspect or know of mail theft involving USPS employees or contractors, report it to the OIG. If you know of COVID relief fraud, report it to the Pandemic Response Accountability Committee’s hotline.
