Ex-Postal fraud investigator charged with stealing $330K from elderly victims

A former U.S. postal investigator who oversaw the fraud department has been charged with stealing more than $330,000 from packages mailed by victims and using the money for home renovations, vacations and escorts, according to the Justice Department.

Scott Kelley, 51, of Massachusetts, was charged in a 45-count indictment returned by a grand jury in Boston Friday with wire fraud, mail fraud, mail theft by a postal officer, theft of government money, money laundering, structuring to evade reporting requirements and filing false tax returns.

After allegedly stealing cash from packages, Kelley laundered it and used $15,400 to pay for sexual services from two escorts, sometimes on workdays; $30,188 for a new swimming pool patio and lighting; a granite countertop for his outdoor bar; and $4,300 on a Caribbean cruise. 

The U.S. Postal Inspection Service is the law enforcement arm of the Postal Service, and from 2015 until June 2022, Kelley worked as the team leader for its Mail Fraud Unit, which investigates scams of the very people he allegedly targeted. 

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He also worked as team leader of the Mail Theft Unit from June 2022 until August 2023. 

Kelley allegedly sent deceitful emails to unwitting postal employees between 2019 and 2023, telling them to intercept packages that were determined to have been sent by victims of a Jamaican scam that targeted Americans. The scammers claimed the victims needed to send money to get lottery or sweepstakes winnings. Kelley told the postal workers to send the packages to him. 

Postal workers were authorized to intercept packages flagged as likely to have been sent by victims of a scam but weren’t allowed to open them without the sender’s consent. 

If it was opened, the postal worker was required to count the cash with another worker present and mail the sender a check for that amount. 

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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 allegedly met with one of the victims, falsely telling that victim that a package wasn’t found and “that their loss was their own fault because they had mailed cash. None of the victims recovered their packages or their cash,” the DOJ said. 

He is also accused of using the key of another postal inspector, who was a direct report to him, stealing $7,000 from an evidence locker and 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.