A former U.S. Postal Inspector living in Massachusetts faces a 45-count indictment linked to more than $330,000 stolen in cash from packages mailed by elderly victims and then laundering the cash and failing to report it to the Internal Revenue Service.
The stolen cash was used to pay for a pool patio and lighting, a granite countertop for an outdoor bar, Caribbean cruise expenses and escorts, according to federal officials with U.S. Attorney for Massachusetts Leah Foley’s Office.
The man also stole cash from an evidence locker and then blamed a direct report for the missing cash, officials said in a statement on Friday.
Scott Kelley, 51, of Pembroke, was indicted on five counts of wire fraud, five counts of mail fraud, five counts of mail theft by a postal officer, one count of theft of government money, 23 counts of money laundering, one count of structuring to evade reporting requirements, and five counts of filing false tax returns.
He made an initial appearance in the U.S. District Court in Boston on Friday and pleaded not guilty to the charges, court filings show. He was released on a $25,000 bond.
Federal officials said that between January 2019 and Aug. 11, 2023, Kelly used unwitting postal employees to intercept nearly 1,950 packages for him and that he stole cash contained inside.
Kelley worked as a Postal Inspector at the Boston Division headquarters of the U.S. Postal Inspection Service, which is the law enforcement arm of the Postal Service.
From 2015 to June 2022, he was the team leader of the Mail Fraud Unit, which investigated lottery and other scams that targeted senior citizens and other vulnerable populations. In June 2022, Kelley was transferred to serve as the team leader of the Mail Theft Unit, a position he held until August 2023.
Federal officials said USPIS ran a nationwide crime-prevention program to disrupt mail fraud scams that originated in Jamaica and targeted U.S. residents with false promises of sweepstakes or lottery winnings.
Scammers would pose as lottery representatives and contact elderly people to persuade them to mail funds to pay as “fees” or “taxes” needed in order to collect their supposed prizes.
The criminal indictment identified seven victims who were scammed into mailing cash parcels that officials say Kelley intercepted and opened, and stole the cash.
The average age of the victims was 75, with the oldest being 82. The victims mailed between $1,400 and $19,100 cash, federal officials said.
Federal officials said Kelley met with one victim in person and told them that he did not know what happened with their package and that their loss was their own fault because they had mailed cash. None of the victims recovered their packages or their cash.
Kelley used a postal employee’s keypad code to unlock and enter an evidence vault at USPIS, officials said. Once inside, he used another Postal Inspector’s key to open an evidence locker and steal $7,000, which resulted in a USPS Office of Inspector General investigation, officials said.
Federal investigators claim Kelley lied when questioned about the stolen cash and that he placed the blame on one of his direct reports.
Kelley deposited and spent almost $340,000 in cash in ways designed to hide that he had stolen it, officials said.
Federal officials outlined some of the ways they say Kelley spent the cash:
- $20,500 for the installation of a patio around his pool
- $2,000 to have his pool heated
- $2,800 to have a granite countertop installed on his outdoor bar
- $4,888 to have lights installed around his pool and outdoor bar
- $4,300 for bar drinks and other expenses incurred during three Caribbean cruises
- $15,400 for sexual services provided by two escorts with whom he texted using a burner phone and whom he met during workdays
Members of the public who believe they may be victims of this case or other elder fraud scams should contact USAMA.VictimAssistance@usdoj.gov. Suspected mail fraud can also be reported to the U.S. Postal Inspection Service online or by calling (877) 876-2455.
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