News

Reisterstown Company Owner Admits To Failing To Pay
Over $1.6 Million To The U.S. Postal Service For Bulk Mailings

FOR IMMEDIATE RELEASE
August 8 , 2014


Baltimore, Maryland – Michael P. Scudder, age 31, of Reisterstown, Maryland pleaded guilty today to mail fraud in connection with a scheme in which he forged bulk mail forms, allowing him to mail over $1.6 million in bulk mail through the U.S. Postal Service for which postage had not been paid.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.

Scudder owned and operated Precision Solutions, Inc., an Owings Mills-based company engaged in bulk mail marketing. Precision Solutions brought its mail to a U.S. Postal Service mail entry facility, where the mail was weighed and counted to determine the total cost of postage. The Postal Service then debited the cost from Precision Solutions’ advance deposit account.

Precision Solutions then obtained an additional discount on postage by transporting the mail from the mail entry facility to the Postal facility which is closest to the delivery addresses. To do so, Precision Solutions was required to: bring a postage statement to the initial mail entry facility which details the type and weight of the mail, and the total number of pieces and containers in the mailing; and fill out a verification form for each mailing to be transported to the destination postal facility after verification, detailing among other things, the weight of the mail and number of containers. A copy of the verification form is kept at the initial mail entry facility, and the original is provided to Precision Solutions to present to the destination Postal facility as proof of payment. When Precision Solutions transports the mail to the destination Postal facility, it provides the mail and the original verification form to a Postal employee as proof of payment.

According to his plea agreement, Scudder executed his scheme to defraud the U.S. Postal Service by bringing only a small amount of mail to the initial mail entry facility for which a stamped and verified verification form was obtained. Scudder would then modify the stamped, verification form to reflect that a much larger amount of mail had been paid for and was ready for shipment. Scudder and his employees would use the forged verification form to present the larger amount of mail to the destination facility.

Scudder forged at least 120 verification forms, and he or his employees presented the forged forms at several Postal facilities in Maryland, Virginia, Pennsylvania and New Jersey. From January to December 2012, the alterations allowed Precision Solutions to mail a total of over 8,860 trays of mail for which postage had not been paid, resulting in a loss of revenue to the U.S. Postal Service of $1,639,912.89.

Scudder faces a maximum sentence of 20 years in prison and a $250,000 fine. Scudder has agreed to pay restitution of $1,639,912.89. U.S. District Judge Catherine C. Blake scheduled sentencing for November 19, 2014 at 9:15 a.m.

United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service - Washington Division for its work in the investigation and thanked Assistant U.S. Attorney Joyce K. McDonald, who is prosecuting the case.

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