A former U.S. Postal Service inspector from Boston has pleaded guilty to taking at least $340,000 from scam victims, according to the Massachusetts U.S. Attorney’s Office on Friday.
Scott Kelley, 52, of Pembroke, pled guilty in federal court to five counts of wire fraud, mail fraud, filing false tax returns, and mail theft by a postal officer; 23 counts of money laundering; and one count of structuring to dodge reporting requirements.
According to federal authorities, Kelley worked in the Boston Division of the United States Postal Inspection Service (USPIS), the postal service’s law enforcement branch. In 2015, he was appointed chief of the division’s mail fraud section, where he oversaw postal inspectors investigating frauds aimed at older individuals and other vulnerable populations.
Kelley worked on a statewide crime-prevention project known as Jamaican Operations Linked to Telemarketing (JOLT), according to federal authorities. The initiative’s purpose was to thwart postal fraud scams that originated in Jamaica and promised bogus sweepstakes or lottery winners.
Federal authorities allege that scammers in this type of scheme contact victims while acting as lottery agents. The scammers encourage victims to send money for bogus fees or taxes, stating that the victims must pay this money before they can receive their prize.
As part of the initiative, USPIS developed a daily “JOLT Report” containing a list of Priority Mail items tracked by IP addresses in Jamaica, according to federal prosecutors. The packages were known as “JOLT parcels,” and they most likely included cash sent by scam victims.
According to federal prosecutors, Kelley requested that her email address be included in the JOLT Report distribution list in 2019. Once the report was put on the list, he began passing it to a support staff member.
According to federal authorities, Kelley requested that the staff member identify any JOLT packages bound for or from a Massachusetts address. He requested that all of these parcels be intercepted and delivered to him.
Between January 2019 and August 2023, Kelley ordered that about 1,950 JOLT items be intercepted and delivered to him, and he eventually got hundreds of packages, according to federal authorities. He opened all shipments that appeared to contain cash and stole any money he discovered.
Victims of Kelley’s scheme included:
- A retired Army veteran in Kansas, then age 76, who mailed $19,100
- A retired construction supervisor in Mississippi, then age 82, who mailed $7,500
- An Indiana resident, then age 78, who cleaned houses while raising five children and mailed $2,000
- A retired nurse with Parkinson’s disease living in Waltham, Massachusetts, then age 78, who mailed $5,400
- A 56-year-old Holliston, Massachusetts, resident living on federal disability benefits who mailed $15,000
- A retired apartment building manager in New Jersey, then age 82, who mailed $1,400
- A retired nurse’s aide in Oklahoma, then age 70, who mailed $10,800
Kelley attempted to conceal his crimes by making dozens of deposits of no more than $4,800 into four different bank accounts, federal authorities claimed. He also laundered some of the funds using around 165 postal money orders worth less than $3,000, sometimes fraudulently identifying two of his cousins as the payers.
Federal authorities said Kelley spent nearly $35,000 of the stolen monies on modifications to his backyard pool, patio, and bar area. He spent an additional $15,400 on prostitutes he encountered during workdays.
Kelley faces up to hundreds of years in jail, dozens of years of supervised release, and millions of dollars in fines for the offenses. His sentencing is slated for November 18.
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