Related Federal Cases
Mail Prep Owner’s Schemes Leave Non-Profit Clients in the Red
A 51-year-old Frederick man has been sentenced to two years in prison for his role in a mail and wire fraud scheme that left non-profit clients with losses exceeding $628,500. Stephen Reid, the former vice president of RMS Direct, Inc., was also ordered to pay $628,581.48 in restitution.
According to court documents, Reid and his co-conspirator, Chester Bigelow, falsified postage statements and forged signatures to make it appear as though mailings were being sent out in a timely fashion, when in fact they were often late. The scheme began in 2005 and continued until 2010.
The majority of Reid’s clients were non-profit corporations that relied on the mailings to raise funds. The timing of the mailings was crucial to their fundraising efforts, and the scheme’s impact was felt far beyond the financial losses. “In addition to defrauding postal customers, this scheme jeopardized the reputation of the U.S. Postal Service with its customers,” said Gary Barksdale, Inspector in Charge of the U.S. Postal Inspection Service.
Reid and Bigelow used a variety of tactics to carry out the scheme, including generating false postage statements, forging the signature of the USPS acceptance clerk, and creating a false impression of the special USPS date stamp used on the postage statement.
The scheme was uncovered through investigations by the U.S. Postal Inspection Service and the U.S. Attorney’s Office for the District of Maryland. “Through investigations such as this, postal inspectors will continue to protect postal customers and ensure the Postal Service retains its reputation as the most trusted government agency,” said Barksdale.
Reid’s sentence is a reminder that white-collar crimes can have serious consequences. The losses suffered by non-profit clients as a result of Reid’s scheme are a stark reminder of the importance of accountability in business.
Reid’s plea agreement details the scope of the scheme, which involved over 200 clients and annual revenue of over $5 million. The scheme’s impact was felt far beyond the financial losses, with many non-profit clients relying on the mailings to raise funds for important causes.
Key Facts
- State: Maryland
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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