Bulk Mail Company Owner Sentenced To More Than Five Years In Federal Prison
Tampa, FL - U.S. District Judge Virginia Hernandez Covington sentenced Galal Ramadan (62, Tampa) yesterday to 71 months in federal prison, followed by 3 years of supervised release, for his participating in a conspiracy to commit mail fraud. As part of his sentence, the court also entered a money judgment of $2.1 million. Ramadan was also ordered to pay $1,318,892.83 in restitution, and a fine of $100,000.
Ramadan was found guilty by a federal jury on July 19, 2012.
According to testimony and evidence presented at trial, in 1994, Ramadan started G.R. Marketing and Graphic Design, a bulk mail company. In 2000, he obtained a permit from the U.S. Postal Service allowing him to send bulk mail using a permit imprint in lieu of a stamp.
In 2005, Ramadan and Richard Nieves, an independent truck driver, discussed how to circumvent an internal control process in the mail delivery system so that Ramadan would avoid paying for mail service, while still billing his customers for postage. In June 2005, Ramadan and Nieves began executing the conspiracy by sending the bulk mail without paying the postage to the U.S. Postal Service. Ramadan and Nieves continued the scheme for approximately two years. During this time, Ramadan continued to bill his customers for the postage, while avoiding payment to the U.S. Postal Service.
In August 2006, Ramadan attempted to expand his business into political mailings. Unlike his other clients, the campaigns required a receipt from the Post Office, which he was not able to provide. The U.S. Postal Inspection Service received a tip about the scheme and initiated an investigation. In total, Ramadan mailed more than five million pieces of mail without ever paying the required postage to the U.S. Postal Service.
In September 2011, Nieves pleaded guilty for his role in the scheme, and cooperated with authorities. On August 8, 2012, he was sentenced to six months’ imprisonment, followed by 3 years of supervised release.
This case was investigated by the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.