Former Federal Law Enforcement Officer Pleads Guilty to Stealing $340,000 Cash from Elderly Scam Victims

BOSTON – A former U.S. Postal Inspector has pleaded guilty to stealing over $340,000 cash from packages mailed by elderly victims of lottery fraud scams, laundering some of the cash and failing to report it to the IRS. Scott Kelley, 52, of Pembroke, Mass. 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. U.S. District Judge Allison D. Burroughs scheduled Kelley’s sentencing for Nov. 18, 2026. Kelley was a federal law enforcement officer authorized to carry a firearm, make arrests and execute search warrants. He worked at the Boston Division headquarters of the U.S. Postal Inspection Service (USPIS), the law enforcement arm of the U.S. Postal Service. The primary mission of USPIS is to protect postal customers from criminal use of the mail system. In 2015, Kelley became the Team Leader in charge of the Mail Fraud team. He supervised Postal Inspectors who investigated lottery and other scams that targeted senior citizens and other vulnerable populations. Kelley worked hand in hand with federal prosecutors investigating and prosecuting federal crimes involving the mail. Working with Jamaican law enforcement authorities, USPIS began a nationwide crime-prevention initiative, Jamaican Operations Linked to Telemarketing (“JOLT”), to disrupt mail fraud scams originating in Jamaica that targeted U.S. residents with false promises of sweepstakes or lottery winnings. Posing as lottery representatives, scammers contacted elderly persons and other vulnerable victims and persuaded them to mail funds to pay “fees” or “taxes” that they supposedly needed to front before they could collect their prize. USPS created a daily JOLT Report, a list of packages that likely contained cash sent by scam victims. Between Jan. 2019 and Aug. 11, 2023, Kelley requested – directly or through support staff – that about 1,950 JOLT parcels be intercepted and sent to him. It is alleged that Kelley received hundreds of those packages. He opened the ones that looked or felt like they might contain cash and stole any cash inside. Victims of Kelley’s scheme included: A retired Army veteran in Kansas, then age 76, who mailed $19,100 cash; A retired construction supervisor in Mississippi, then age 82, who mailed $7,500 cash; An Indiana resident who cleaned houses while raising five children, who mailed $2,000 cash when they were 78; A retired nurse with Parkinson’s disease living in Waltham, Mass., who mailed $5,400 cash when they were 78; A 56-year old victim on Social Security disability benefits living in Holliston, Mass., who mailed $15,000 cash; A retired apartment building manager in New Jersey, then age 82, who mailed $1,400 cash; and A retired nurse’s aide in Oklahoma, then age 70, who mailed $10,800 cash. Although it is unknown how much Kelley stole in total, he possessed approximately $340,000 in cash during the period when he was receiving hundreds of intercepted JOLT parcels. Of this amount: He deposited about $131,000 into four separate bank accounts, on about 60 different dates, in amounts never exceeding $4,800. He allegedly did so to avoid being flagged as a customer depositing an unusually large amount of cash, which, as Kelley knew, could trigger the banks to report him to federal financial regulators. He paid about $158,000 in cash to buy approximately 165 postal money orders, most of which he deposited into his bank accounts or used to pay credit card bills. He always bought less than $3,000 in a day, knowing that post offices are required to collect identification information only from customers who buy $3,000 or more in money orders in a single day. On more than 20 of the money orders he bought, Kelley falsely identified two of his relatives as the payers. He did so to try to conceal that he was the cash purchaser of the money orders. He made almost $50,000 in cash purchases. These included $20,500 for a patio around his backyard pool: He also paid $4,800 in cash for a marble countertop on his pool bar and to heat the pool; $4,888 in cash to install landscape lights around the pool and lighting for the pool bar; and $4,300 in cash for bar drinks and other expenses incurred during Caribbean cruises he took with his family. Kelley also paid $15,400 in cash to two prostitutes whom he met during workdays and with whom he texted using a burner phone: Members of the public who believe they may be victims of this case or other elder fraud scams should contact USAMA.VictimAssistance@usdoj.gov . Suspected mail fraud can also be reported to the U.S. Postal Inspection Service online or by calling (877) 876-2455. The charges of wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of mail fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of mail theft by a postal officer each provide for a sentence of up to five years in prison, up to one year of supervised release and a fine of up to $250,000. The charges of money laundering each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the value of the property involved in the transaction, whichever is greater. The charge of structuring provides for a sentence of up to five years in prison, up to one year of supervised release and a fine of up to $250,000. The charges of filing false tax returns each provide for a sentence of up to three years in prison, up to one year of supervised release and a fine of up to $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. United States Attorney Leah B. Foley; Michael Ray, Special Agent in Charge, Office of Professional Responsibility, Technical and Sensitive Operations Field Office, U.S. Postal Service Office of Inspector General; and Tom Demeo, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys Christine Wichers and Eric L. Hawkins are prosecuting the case.