Joseph M. McGonagle, III, 38, pleaded guilty before U.S. District Judge Nathaniel M. Gorton to perjury and obstruction of justice. Had the case proceeded to trial the Government’s evidence would have proven that McGonagle knowingly and wilfully falsely testified under oath at a May 19, 2010, court hearing held in U.S. District Court in Boston. At the time the offenses were committed, McGonagle was an inspector with the U.S. Postal Inspection Service. He had been assigned to the prosecution team in United States v. Eric L. Levine, et al. Levine was tried and convicted by a jury in 2010.

On the evening of May 18, 2010, during the Levine, et al. trial, Levine’s lead defense counsel at Denner Pelligrino learned that McGonagle had a phone conversation that evening with Melanie Abbruzzese, a paralegal employed at Denner Pelligrino. Defense counsel learned that during that conversation, Inspector McGonagle told Abbruzzese that an Assistant U.S. Attorney prosecuting the case had just sent an email to his staff at the U.S. Postal Service indicating the names of the defense witnesses which listed defendant Levine as a possible witness. The following morning, defense counsel alerted the government and the Court of the conversation between Abbruzzese and McGonagle.

Judge O’Toole held a hearing to determine whether there was any breach of confidentiality. McGonagle and Abbruzzese both testified at the hearing under oath.
McGonagle was questioned about the May 18 phone call to Abbruzzese, and more broadly, about his other interactions with Abbruzzese to include contact by email, phone or in person. McGonagle testified that he had no social out-of-office meetings with Abbruzzese, that his email contacts with her were of a professional nature, and that there were no calls during the Levine trial.

Contrary to his testimony, McGonagle had numerous social, out-of-office meetings with Abbruzzese during the Levine trial, including drinks on three occasions all within the10 days prior to his May 19, 2010 testimony. Further, on the evening of May 13, 2010, following their visit to the Bell and Hand restaurant in Boston, McGonagle and Abbruzzese were observed by a co-worker in McGonagle’s car while parked in front of Denner Pelligrino’s office. In addition, documentary evidence, to include cell tower information from Abbruzzese’s cell phone, showed that Abbruzzese had overnight visits at McGonagle’s apartment in Danvers the evenings of May 14 and May 16, 2010.

Furthermore, contrary to McGonagle’s testimony that emails between them were all of a professional nature, there were actually 41 emails between the two work email accounts from March 29 and May 18, 2010. The first three of those emails, dated Mar. 29 through Mar. 30, related to official business. The remaining 38 emails, dated April 12 through May 18, 2010, were all of a personal nature. Finally, although McGonagle testified that “I don’t think there were any phone calls,” cell phone records showed approximately 40 calls between the two between May 5 and May 19, 2010. The prosecutor told the court yesterday that four of those calls actually exceeded one hour, and on the day of their testimony alone, they exchanged seven phone calls.

The evidence would have further shown that McGonagle’s false testimony concerned a matter material to the court’s inquiry. The Judge ruled that McGonagle’s false statements hindered the court’s inquiry into the nature of the relationship between he and Abbruzzese. McGonagle’s false testimony was intended to, and did, conceal the existence of his ongoing relationship with Abbruzzese and thus deprived the court of a fulsome inquiry into whether anything inappropriate, in terms of confidentiality, was passed from one party to the other.

Judge Gorton scheduled sentencing for May 3, 2012. McGonagle faces up to five years in prison on the perjury charge and 10 years in prison for obstruction of justice. He also faces three years of supervised release following incarceration and a $250,000 fine on each charge.

United States Attorney Carmen M. Ortiz and Curtis Lembke, Area Special Agent in Charge, Special Inquiries Division, U.S. Postal Service, Office of Inspector General made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Diane C. Freniere of Ortiz’s Public Corruption and Special Prosecutions Unit.

ATLANTA, GA – DEBORAH FAMBRO-ECHOLS, 49, of Hapeville, Georgia, WENDY B. FRASIER, 34, of Atlanta, Georgia, DARALYN M. WEAVER, 30, of Atlanta, Georgia, JABRIL O. McKEE, 24, of Fairburn, Georgia, and OHMAR D. BRADEN, 36, of Lithonia, Georgia have been indicted by a federal grand jury on charges of stealing U.S. Treasury checks from an Atlanta mail distribution center and then cashing them at banks and other businesses using fake identification documents.

United States Attorney Sally Quillian Yates said of the case, “Georgia ranks third in the country in the number of U.S. Treasury checks – including federal tax refund, Social Security, and Veterans checks – reported stolen from the mail before they reach their intended recipients. And Georgia is actually ranked first on such stolen checks based on a percentage of population. This is unacceptable. Our office has established a task force, including 14 federal, state, and local authorities, to specifically address this problem, with the goal of removing Georgia from this unfortunate list.  This indictment is a key step in that direction as we target both those who directly steal from the mail, but as this indictment shows, we will also go after the network of brokers and check cashers who are key parts of these theft rings.”

“With tax season gearing up, Georgia taxpayers can rest assured that the U.S. Secret Service and its partners are working tirelessly to guard against the theft and misuse of Federal and State tax refunds, Social Security and Veterans checks. To maintain the tax payer’s trust in our economic system, we will continue to aggressively pursue anyone who violates this trust,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.

Paul Bowman, Area Special Agent in Charge of the United States Postal Service, Office of Inspector General, said, “Deborah Fambro-Echols reflects just a very small percentage of employees who failed to uphold the trust and integrity placed in them.  The U.S. Postal Service Office of Inspector General takes these cases very serious and investigates them to the fullest extent of the law.  The general public should be reminded that the majority of postal employees remain committed to exhibiting the highest moral character and trust that our customers expect and deserve.”

Guy P. Fallen, Special Agent in Charge, Office of the Inspector General, Social Security Administration said, “The Office of the Inspector General is gratified to have worked with the U.S. Attorney in ensuring that those who would fraudulently obtain Social Security benefits are brought to justice.”

Special Agent in Charge Quentin G. Aucoin, Department of Veterans Affairs, Office of Inspector General (VA/OIG) said, “Thefts of V.A. benefits checks intended for veterans who honorably served this country will not be tolerated.  VA OIG vigorously investigates allegations of criminal activities impacting VA programs.”

Fulton County Sheriff “Ted” Jackson said, “The Fulton County Sheriff’s Office considers it an honor to work alongside and share resources with the United States Secret Service and the United States Postal Service Office of the Inspector General to shut down thieves who appallingly victimized hardworking Georgians who deserve the combined efforts local and federal law enforcement in resolving these types of crimes.  I commend all of the investigators for their unrelenting pursuit of these criminals which will keep senior citizens, taxpayers, and veterans safe from fraud.”

According to United States Attorney Yates, the charges and other information presented in court:  FAMBRO-ECHOLS worked as a mail handler at the Atlanta Processing and Distribution Center, a centralized mail distribution center in Hapeville, Georgia that processes mail for delivery to dozens of zip codes in Georgia.  While on the job, she allegedly stole hundreds of U.S. Treasury checks and provided them to a network of brokers and check cashers who would then negotiate the checks and split the criminal proceeds with her.  These individuals allegedly forged endorsements and used fake identifications to pose as the intended recipients and cash the checks.

The indictment alleges that in April 2011, law enforcement authorities discovered over 660 Treasury checks totaling over $590,000 in FAMBRO-ECHOLS’ possession and at her residence in Hapeville.  Most of the checks discovered during the search were dated from April 8 to 19, 2011, and thus stolen in less than a two-week period.  FRASIER allegedly acted as a broker for FAMBRO-ECHOLS and recruited others to cash stolen checks at banks and other business establishments.  WEAVER, McKEE, and BRADEN allegedly worked as check cashers in the scheme, negotiating stolen checks with the help of fake identification documents and sharing the proceeds with the co-conspirators.

The 7-count indictment alleges conspiracy, theft of government money, possession of stolen Treasury checks, bank fraud, and aggravated identity theft.  The charges carry maximum sentences that range from 5 to 30 years in prison, and fines of up to $1 million.  The aggravated identity theft charge requires a mandatory minimum sentence of 2 years in addition to any other sentence imposed.  In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Members of the public are reminded that the indictment contains only allegations.  A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the United States Secret Service; United States Postal Service, Office of Inspector General; Social Security Administration, Office of Inspector General; United States Postal Inspection Service; U.S. Department of Veterans Affairs, Office of Inspector General; U.S. Department of the Treasury, Office of Inspector General; Georgia Department of Revenue, Office of Special Investigations; and DeKalb Police Department; with valuable assistance provided by the Fulton County Sheriff’s Office.

The Stolen Treasury Check Task Force is an informal group of 14 federal, state, and local law enforcement agencies working together to address the problem of stolen U.S. Treasury checks in the Northern District of Georgia.

Assistant United States Attorneys Stephen H. McClain and Loranzo M. Fleming are prosecuting the case.

U.S. Attorney Tompkins is joined in making today’s announcement by Paul Bowman, Area Special Agent in Charge of the United States Postal Services, Office of the Inspector General (USPS-OIG). U.S. District Judge Martin Reidinger also ordered Robin Knight Smith, 46, of Waynesville, N.C., to complete 100 hours of community service and to pay approximately $46,000 in restitution.

In January 2011, following a four-day trial a jury found Smith guilty of one count of aiding and abetting the submission of a false FMLA request, one count of making a false statement to the government, and four counts of submitting a false writing in connection with an application or receipt of worker’s compensation benefits. According to evidence presented at trial, Smith had allegedly suffered an on-the-job accident while working at a mail processing facility in Asheville. She then sought worker’s compensation and other employment benefits as a result of this incident and, through written documents and oral statements, she claimed that her injuries prevented her from returning to her regular job or an even less strenuous work assignment.

Trial evidence indicated that the USPS-OIG fraud hotline received an anonymous tip claiming that Smith was not truthful about her physical condition and her inability to return to work. Trial testimony revealed that Special Agents with USPS-OIG conducted surveillance of Smith for two months. Videotaped footage shows Smith engaging in a wide range of social activities that exceeded her stated physical limitations. Smith had claimed that she was not able to stand for more than ten minutes at a time, that she could not sit for long periods of time, that she could not lift more than five pounds, and that she needed a wheelchair or walker during long walking trips. Contrary to her statements, the investigation revealed that Smith often traveled to Harrah’s Casino in Cherokee and sat on gambling stools for long periods of time. Evidence presented at trial also showed Smith often used a walker or stroller before or during an appointment with a doctor, but she usually walked without such devices while shopping or engaging in social activities.

U.S. Attorney Tompkins thanked the federal agents and prosecutors for their dedication to this investigation, which began in June 2009. “The result of this important work is that the government will be saved over a million dollars in payments to a person who tried to defraud the disability system,” said the Western District’s top law enforcement official. “The serious pursuit by the government of this criminal activity serves two other important purposes: It honors the efforts of every honest and hard working government employee, and serves as a warning to anyone who might believe that the government is not carefully watching, pursuing and punishing such frauds.”

According to ASAC Bowman, “Smith reflects just a very small percentage of employees who failed to uphold the trust and integrity placed in them. The general public should be reminded that the majority of postal employees remain committed to exhibiting the highest moral character and trust that our customers expect and deserve.” In announcing the defendant’s sentence, Judge Reidinger stated that Robin Knight Smith had engaged in a “pattern of conduct to defraud the government.” Judge Reidinger also said that he imposed a term of imprisonment “to afford adequate deterrence to criminal conduct,” and to serve as a warning to other workers seeking a “free ride” at the expense of the American taxpayers.

During the same trial, Smith’s husband and co-defendant, Charles Phillip Smith, 47, of Waynesville, was convicted on one count of aiding and abetting the submission of a false FMLA request and on two counts of making a false statement to the government. He was sentenced to three years of probation and ordered to pay a $200 assessment fine. Upon designation of a federal facility, Smith, who has been released on bond, will be transferred into custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.

The investigation of the case was handled by USPS-OIG. The prosecution for the government was handled by Assistant U.S. Attorneys Kenneth M. Smith and Jennifer L. Dillon of the U.S. Attorney’s Office.

Bennie H. Haynes, 52, of Dayton, N.J., was arrested this morning by agents the U.S. Postal Service, Office of Inspector General. Haynes was charged by Complaint with one count each of theft of government property, bribery and mail theft by a postal employee. He was scheduled to appeared before U.S. Magistrate Judge Cathy Waldor in Newark federal court.

According to the Complaint:

From June 20, 2011, to Oct. 19, 2011, Haynes met numerous times with an undercover law enforcement agent who purported to be engaged in a scheme to obtain income tax refund checks generated through the filing of phony individual income tax returns with the IRS. In exchange for payment, Haynes agreed to participate in the scheme by providing addresses located along his mail route in Somerset, N.J., to be used in connection with the filing of false tax returns and by diverting the resulting tax refund checks from the mail stream.

The charge of theft of government property carries a statutory maximum potential penalty of 10 years in prison, and a $250,000 fine. The charge of bribery carries a maximum potential penalty of 15 years in prison and a $250,000 fine. The charge of mail theft by a postal employee carries a maximum sentence of five years, and a fine for $250,000.

U.S. Attorney Fishman credited special agents of the Office of Inspector General – U.S. Postal Service, under the direction of Acting Special Agent-in-Charge is Rafael Medina; inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Philip R. Bartlett; and special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge JoAnn S. Zuniga for the investigation leading to the arrest.

72-Year-Old Postal Employee Makes Shocking Confession to FOX 26: MyFoxHOUSTON.com

HOUSTON – While postal inspectors gathered evidence, 72-year-old Karen Samford sat in a folding chair, wondering what was to become of her 36-year career with the US Postal Service."People can have mental issues," Samford said. "It doesn’t make them crazy; it doesn’t make them insane. It makes them stupid."For the past 10 years, Samford has been stealing bulk mail, mail that was going to be destroyed anyway, from the Pearland Post Office.She said she stole enough mail each year to fill up a big box truck.

Read more: 72-Year-Old Postal Employee Makes Shocking Confession to FOX 26.

Andrae Wilson, 31, was sentenced by U.S. District Judge William Young to four months in prison to be followed by two years of supervised release. Wilson was also ordered to repay over $9,000 he spent using a stolen credit card. Wilson pleaded guilty to two counts of mail theft by a postal employee in October 2011.

Had the case proceeded to trial the Government’s evidence would have proven that the defendant was employed as a Part-Time-Flexible Letter Carrier in Roxbury beginning in November 2004. In January 2007, a Roxbury resident complained that a credit card had been stolen from her mail and used to purchase thousands of dollars of goods and services. All the purchases were made during the month of December 2006. After reviewing surveillance video from one of the stores where the stolen credit card was used, it was determined that Wilson was the one using the resident’s credit card. A review of delivery records indicated that Wilson was the mail carrier assigned to the route that included the resident’s address.

Debra L. Blasko, 58, Glendale, Calif, is charged with theft of mail by an employee of the U.S. Postal Service. The indictment alleges that Blasko was an employee at the Downs Branch of the U.S. Postal Service in Downs, Kan., when on three occasions in 2010 – July 2, July 5 and July 9 – she stole packages of the pain killer hydrocodone.

If convicted she faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count. The U.S. Postal Service investigated. Special Assistant U.S. Attorney Duston Slinkard is prosecuting.

via USDOJ: US Attorney’s Office – District Of Kansas.

According to court documents, Beard worked as a distribution and window clerk for the Postal Service in Groveland. From October 2006 through January 2009, Beard received federal workers’ compensation benefits for an on-the-job injury. Because of her claimed injuries, restrictions were placed on Beard’s physical activities: no reaching, no pushing, no pulling, no driving for more than 20 minutes, etc. Yet, Beard performed various physical tasks, such as horseback riding, caring for horses, yard work, and driving all using the purportedly injured part of her body. Because of claims Beard made in routine Department of Labor questionnaires, she continued to receive workers’ compensation benefits, all while not entitled to such benefits.

At least once a year the U.S. Department of Labor’s Office of Workers’ Compensation Programs is required to ask every total disability benefit claimant whether the claimant has had any employment, earnings, or changes in their medical condition over the previous 15 months. In compliance with regulations, OWCP sends out a questionnaire to each claimant. Claimants reporting changes in employment, earnings, or their medical conditions on the questionnaire may experience a reduction or termination of benefits.

This case was the product of an investigation by the United States Postal Service Office of Inspector General. Assistant United States Attorney Jeremy R. Jehangiri prosecuted the case.

“Workers’ compensation fraud is a serious crime and the U.S. Postal Service Office of Inspector General will vigorously pursue anyone who commits this offense. Today’s sentencing shows that our agency and the U.S. Attorney’s Office will not tolerate abuse of the workers’ compensation program and violators will be brought to justice,” said Special Agent in Charge Nichole Cooper, Pacific Area Field Office, U.S. Postal Service Office of Inspector General.

Beard was ordered to begin serving her sentence on February 16, 2012.

Reisinger admitted that he removed mail containing Menards rebate checks that has been misaddresssed and were supposed to be returned to sender. He then converted the five rebate checks to his own use, in the total amount of $577.48. At the time, Reisinger was employed as a distribution clerk at the Valley Junction Station in West Des Moines.

Each count of theft by a postal employee carries a maximum penalty of up to five (5) years in jail, a fine of up to $250,000, or both. However, based on the advisory sentencing guidelines that apply to this offense, the parties have agreed to recommend a sentence of 0-6 months, and it is possible that the court will impose a sentence of probation. Reisinger also will be required to pay restitution. The ultimate sentence will be decided by the judge.

Oddo, 43, of East Brady, Pennsylvania, was tried in Pittsburgh.

According to Assistant United States Attorney Paul E. Hull, who prosecuted the case, the evidence presented at trial established that Oddo was a postal employee at the East Brady, Pa., Post Office who embezzled $2,650.77 in postal service funds.

Judge Cohill scheduled sentencing for April 10, 2012 at 1:00 p.m. The law provides for a total sentence of one year in prison, a fine of $100,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the criminal history, if any, of the defendant.

Pending sentencing, Oddo remains free on bond.

The United States Postal Inspection Service conducted the investigation that led to the prosecution of Terri Oddo.

via USDOJ: US Attorney’s Office – Western Pennsylvania.