Long Island Bulk Mailer Pleads Guilty To Multi-Million Dollar Mail Fraud Scheme

inspectorEarlier today, Matthew Rosencrans was arraigned on a felony information and pled guilty at the federal courthouse in Central Islip, New York, to committing a multi-million dollar mail fraud scheme in connection with his ownership and operation of Community Coupons, an advertising business located in Glen Cove, New York.

The charge and plea were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Postal Inspector in Charge, New York Division, U.S. Postal Inspection Service.

Community Coupons printed coupon booklets and flyers that advertised for a fee its customers’ special promotions and discounted services and mailed those materials through the United States Postal Service at a discounted bulk mail rate via a permit. From approximately July 2010 to August 2013, Rosencrans conducted a scheme to defraud the Postal Service by submitting over 15 million pieces of bulk mail for distribution throughout the New York metropolitan area, although he only paid for delivery of approximately 3.4 million pieces of bulk mail. The fraud deprived the Postal Service of over $2,000,000 in payments that should have been paid by Community Coupons.

“In these financially difficult times for the Postal Service, the defendant failed to pay millions of dollars owed for services rendered,” stated Acting United States Attorney Currie. “Although he was in the business of providing his customers’ discounted services to consumers, Rosencrans cannot discount the law for his own financial gain.” Postal Inspector in Charge Bartlett stated, “A theft from the Postal Service is a theft from the American Public. Postal Inspectors will vigorously pursue and bring to justice anyone who cheats the Postal Service of revenue.”

Today’s plea took place before United States District Judge Joanna Seybert. When sentenced, Rosencrans faces up to 20 years in prison, as well as criminal forfeiture and restitution payable to the United States Postal Service in the amount of $2,101,278.33.

The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles N. Rose is in charge of the prosecution.

  • James Martin

    so he managed to slip 11 million pieces of mail into the system ? Did he bring it in on the honor system …or maybe somebody took a long lunch?

  • Cliff Clavin

    He paid for less than 1/4 of his mailings? Who in the USPS was in charge of acceptance and billing for these?

    $2,101,278.33 worth of underpayments could sure grease a lot of palms under the table. I cannot imagine him doing this unless he had someone inside the USPS helping him.

    It’s interesting the inspection service can figure right down to the last .33 cents years later when it wasn’t figured right the first time around.

    Definitely an oversight by USPS management.

  • Uncle Ben

    Didn’t the OIG recommend “seamless acceptance” and probably self-service terminals because the post office can cut BMEU jobs!
    Let the fox guard the henhouse because privatization is the miraculous remedy –this snake oil is brought to you by—-