New Jersey CEO Rips Off USPS with $158,380 Scam

ALEXANDRIA, Va. – A New Jersey company and its CEO have been caught red-handed in a brazen scam that left the U.S. Postal Service (USPS) footing a $158,380 bill for work they never actually did.

Cornerstone Facility Solutions, LLC (Cornerstone), a maintenance and repair service located in Brick, New Jersey, and its CEO, Paul Galgon III, have been exposed for falsifying invoices and inflating the cost of services provided to the USPS. The scheme, which lasted from July 2016 to July 2021, saw Cornerstone submit false invoices to the USPS for repair work, claiming its employees performed the work when in fact it was done by subcontractors.

But that wasn’t the only deceitful move made by Galgon. He directed his employees to alter subcontractor invoices to make them appear as though the work was performed by Cornerstone employees, allowing the company to build in an improper 30-percent markup on the subcontractor’s costs.

The civil case was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the USPS Office of Inspector General. ‘This is a textbook example of how white-collar crime can hurt innocent parties,’ said Assistant U.S. Attorney William Hochul III, who handled the civil case. ‘We will continue to hold accountable those who exploit their positions for personal gain.’

Galgon’s scheme didn’t go unpunished, however. He pleaded guilty to one count of criminal wire fraud for the conduct covered by the civil settlement and was sentenced to three years of probation and a $5,000 fine. The company also paid $316,779 to resolve their False Claims Act liability.

The resolution of this case serves as a stark reminder that those who commit white-collar crimes will be held accountable. ‘We urge all businesses to take a hard look at their practices and ensure they are complying with all applicable laws and regulations,’ said a spokesperson for the U.S. Attorney’s Office. ‘The consequences of failure can be severe.’

The case is a stark example of the devastating impact of white-collar crime on innocent parties, and it serves as a warning to all businesses to ensure they are complying with all applicable laws and regulations.

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