A U.S. Postal Service employee, initially investigated for defrauding government agencies, was revealed to be a victim of a sophisticated romance scam, which ultimately led to the dismantling of a large-scale fraud and money laundering operation. The investigation, which began in June 2020, uncovered a criminal conspiracy responsible for millions in losses to federal and state agencies.
The U.S. Secret Service first alerted the Office of Investigations about a Fort Lee, New Jersey mail carrier suspected of receiving unemployment insurance payments using third-party names. A multi-agency task force, including the Department of Labor OIG, Small Business Administration (SBA) OIG, Treasury Inspector General for Tax Administration, and IRS Criminal Investigation, traced nearly $452,000 in SBA deposits into the employee's account within two months. Records showed he then transferred about $238,000 to a Philadelphia business account.
Investigators discovered over 70 Economic Injury Disaster Loan applications, purportedly for more than 60 small businesses across 23 states, all designating the employee's personal bank account for funds. However, during an interview, the employee revealed he had fallen victim to a "catfishing" scam. Believing he was engaged to an online model, he followed instructions from a supposed lawyer to receive and transfer funds, unwittingly laundering ill-gotten gains to accounts in Nigeria and China. As a victim, he was not charged.
A search warrant executed at the scammer's residence uncovered extensive evidence of aggravated identity theft, fraudulent unemployment claims, and other romance scams. The scammer was linked to a criminal conspiracy that caused approximately $5.6 million in losses to the federal government and about $890,000 to state unemployment agencies. Indicted by a grand jury in Colorado, the scammer pleaded guilty to conspiring to commit wire fraud and money laundering. He was sentenced to six and a half years in prison and ordered to pay nearly $2.6 million in restitution to his victims.