A former U.S. postal investigator responsible for leading the fraud department has been accused of embezzling over $330,000 from packages mailed by victims, allegedly spending the money on home improvements, trips, and escorts, according to the Justice Department.
The individual, Scott Kelley, aged 51 and residing in Massachusetts, faces a 45-count indictment issued by a Boston grand jury on Friday. The charges include wire fraud, mail fraud, mail theft by a postal officer, theft of government money, money laundering, evading reporting obligations, and filing false tax returns.
Kelley purportedly laundered the stolen cash, spending $15,400 on escort services, even during working hours; $30,188 on a new swimming pool patio with lighting; a granite countertop for an outdoor bar; and $4,300 on a Caribbean cruise.
The U.S. Postal Inspection Service, the law enforcement branch of the Postal Service, saw Kelley as the team leader of the Mail Fraud Unit from 2015 to June 2022, where he investigated scams similar to those he allegedly perpetrated against victims.
Kelley is believed to have requested 1,950 packages be sent to him, stealing the cash inside, the DOJ said.
Seven alleged victims with an average age of 75 are identified in the indictment. The oldest alleged victim was 82.
The victims mailed between $1,400 and $19,100 each to the scammers.
Kelley is accused of meeting one victim and falsely claiming that their package was not found, blaming the victim for their loss because they mailed cash. None of the victims were able to recover their packages or money, according to the DOJ.
Scott Kelley’s renovated outdoor bar. (DOJ)
Additionally, he allegedly used a key belonging to another postal inspector under his supervision, stealing $7,000 from an evidence locker and subsequently blaming the employee for the theft.
Kelley laundered the nearly $340,000 in cash by buying postal money orders and hiding the fact that he was the purchaser and payee, and spreading out more than 60 bank deposits through four bank accounts at two banks, the DOJ said.
He faces up to 20 years in prison for each wire fraud, money laundering and mail fraud charge, five years for each mail theft and structuring to evade reporting requirements charge, 10 years for theft of government money and three years for each filing false tax returns charge if found guilty.
