Former postal fraud investigator accused of stealing $330,000 from scam victims
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Stories about scams are troubling enough, but this one is especially unsettling.
A former postal inspector—someone whose job was to protect Americans from fraud—now stands accused of becoming a fraudster himself.
Prosecutors say he exploited his role to take cash that had already been stolen once from older scam victims.
For those who depend on public servants to act responsibly, the allegations raise serious questions about trust and accountability.
Here’s what investigators say happened and what we can learn from it.
Scott Kelley, 51, of Massachusetts, once led the US Postal Inspection Service’s Mail Fraud Unit and later the Mail Theft Unit.
Between 2019 and 2023, he allegedly abused his authority to steal more than $330,000 from packages that had already been flagged as part of scam investigations.
Normally, postal employees are trained to intercept suspicious packages sent by scam victims and return the money.
Kelley, however, is accused of rerouting these packages to himself and pocketing the cash instead.
Some victims reportedly lost as much as $19,100 each.
According to a federal indictment, Kelley did not hide his spending.
Investigators allege that the money funded a Caribbean cruise, a backyard pool patio, granite countertops, and even $15,400 spent on escorts—sometimes during work hours.
He also allegedly laundered funds through postal money orders and scattered deposits across multiple accounts to avoid detection.
The indictment identifies seven victims, with an average age of 75, who were defrauded a second time by someone they believed would help.
One victim, age 82, lost nearly $20,000.
Prosecutors say Kelley even told one victim that their package was never found and suggested it was their fault for sending cash in the first place.
None of the victims ever recovered their money.
This case highlights how even well-designed systems can be undermined by one individual.
Kelley faces decades in prison if convicted, but for older Americans—who already lose billions annually to scams—the larger lesson is about vigilance.
Fraud can happen anywhere, even through trusted institutions, making it crucial to stay informed and cautious.
Older adults are often seen as prime targets because they may have savings, are sometimes less familiar with digital scams, and tend to be more trusting.
According to the FBI, Americans over 60 reported losing more than $3 billion to scams in 2022.
That’s why awareness and prevention are so important—and why trust in public institutions matters so deeply.
Cases like this remind us that while most public servants are committed to protecting the community, it only takes one breach of trust to cause lasting harm.
By staying alert, asking questions, and sharing information, we can help protect ourselves and one another from fraud.
Together, we can make it harder for scammers—and those who abuse their positions of authority—to succeed.
Read next: Amazon warns Prime customers of rise in scam attempts: What to know and how to stay safe
Have you or someone you know ever been targeted by a scam? What steps do you take to stay safe and informed? Sharing experiences helps strengthen the entire community against fraud.
A former postal inspector—someone whose job was to protect Americans from fraud—now stands accused of becoming a fraudster himself.
Prosecutors say he exploited his role to take cash that had already been stolen once from older scam victims.
For those who depend on public servants to act responsibly, the allegations raise serious questions about trust and accountability.
Here’s what investigators say happened and what we can learn from it.
A former postal fraud investigator is accused of stealing cash from scam victims whose mail he was supposed to protect. Image Source: Pexels / Ekaterina Belinskaya.
A wolf in inspector’s clothing
Scott Kelley, 51, of Massachusetts, once led the US Postal Inspection Service’s Mail Fraud Unit and later the Mail Theft Unit.
Between 2019 and 2023, he allegedly abused his authority to steal more than $330,000 from packages that had already been flagged as part of scam investigations.
Normally, postal employees are trained to intercept suspicious packages sent by scam victims and return the money.
Kelley, however, is accused of rerouting these packages to himself and pocketing the cash instead.
Some victims reportedly lost as much as $19,100 each.
Also read: Think twice before opening that package—USPS flags major privacy risk
Where the money went
According to a federal indictment, Kelley did not hide his spending.
Investigators allege that the money funded a Caribbean cruise, a backyard pool patio, granite countertops, and even $15,400 spent on escorts—sometimes during work hours.
He also allegedly laundered funds through postal money orders and scattered deposits across multiple accounts to avoid detection.
The human cost
The indictment identifies seven victims, with an average age of 75, who were defrauded a second time by someone they believed would help.
One victim, age 82, lost nearly $20,000.
Prosecutors say Kelley even told one victim that their package was never found and suggested it was their fault for sending cash in the first place.
None of the victims ever recovered their money.
Also read: Scammers are posing as USPS—here’s how to spot the warning signs
Lessons for consumers
This case highlights how even well-designed systems can be undermined by one individual.
Kelley faces decades in prison if convicted, but for older Americans—who already lose billions annually to scams—the larger lesson is about vigilance.
Fraud can happen anywhere, even through trusted institutions, making it crucial to stay informed and cautious.
Also read: Former postal worker’s fraud case highlights growing mail theft problem
How to protect yourself from mail fraud
- Never mail cash: No legitimate organization will ask you to send physical cash through the mail.
- Verify requests: If you receive a letter, email, or call about a prize or urgent payment, confirm with the organization directly using a trusted phone number or website.
- Report suspicious activity: Contact the U.S. Postal Inspection Service, the Federal Trade Commission, or local law enforcement if you suspect fraud.
- Stay connected: Scammers often target isolated individuals. Talk with family or friends before sending money.
- Keep documentation: Save letters, receipts, or tracking numbers related to financial transactions for added protection.
Also read: Protect your inbox: How to spot and avoid USPS scam texts
Why scammers target seniors
Older adults are often seen as prime targets because they may have savings, are sometimes less familiar with digital scams, and tend to be more trusting.
According to the FBI, Americans over 60 reported losing more than $3 billion to scams in 2022.
That’s why awareness and prevention are so important—and why trust in public institutions matters so deeply.
Cases like this remind us that while most public servants are committed to protecting the community, it only takes one breach of trust to cause lasting harm.
By staying alert, asking questions, and sharing information, we can help protect ourselves and one another from fraud.
Together, we can make it harder for scammers—and those who abuse their positions of authority—to succeed.
Read next: Amazon warns Prime customers of rise in scam attempts: What to know and how to stay safe
Have you or someone you know ever been targeted by a scam? What steps do you take to stay safe and informed? Sharing experiences helps strengthen the entire community against fraud.
