A Former Postal Inspector Used His Inner Knowledge of the System to Launder Hundreds of Thousands of Dollars

Published Aug 3, 2026, 10:20 AM EDT

The man stole cash from packages mailed by elderly victims of lottery fraud scams and laundered some of it, never informing the IRS.

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Published Aug 3, 2026, 10:20 AM EDT

A former U.S. Postal Inspector has pleaded guilty to stealing over $340,000 in cash from elderly people, including from one veteran. Scott Kelley, 52, of Pembroke, Mass., formerly worked at the Boston Division headquarters of the U.S. Postal Inspection Service (USPIS). He admitted to stealing money from packages that elderly victims of lottery fraud scams had mailed, according to the U.S. Attorney's Office of the District of Massachusetts. He then laundered some of that money but failed to report it to the Internal Revenue Service (IRS). Between Jan 2019 and Aug 2023, Kelley intercepted some 1,950 parcels. Kelley pleaded guilty to five counts of wire fraud; five counts of mail fraud; five counts of mail theft by a postal officer; 23 counts of money laundering; one count of structuring to evade reporting requirements; and five counts of filing false tax returns.