Federal Contractor Convicted for Stealing Over $1.2 Million from the U.S. Postal Service

Michael Rymar, a Rochester Hills based contractor, pleaded guilty today to embezzling over $1 million in government funds from the United States Postal Service announced Acting United States Attorney Saima S. Mohsin.

Mohsin was joined in the announcement by Kenneth Cleevely, Special Agent in Charge of the Contract Fraud Investigations Division, United States Postal Service, Office of Inspector General.

Michael Rymar, 59, of Rochester Hills, stands convicted of embezzling government funds from the United States Postal Service (USPS). From 2015 to 2018, USPS engineers awarded Rymar’s company, Horizons Materials & Management LLC, with over $5 million in contracts for repairs on USPS buildings in Michigan and New York. But the documentation Rymar provided contained false and fraudulent statements, oftentimes dramatically and falsely overstating the amount he paid subcontractors to complete the repairs. Rymar also falsely inflated the amount he paid his own employees and the cost of materials on USPS jobs. Over the course of the three-plus year fraudulent scheme, Rymar stole over $1.2 million from USPS out of the $5 million in contracts he was awarded.

Acting United States Attorney Mohsin stated, “Today’s guilty plea shows our office’s commitment to protecting the public’s funds and to prosecute individuals who steal from government agencies.”

“The Postal Service spends hundreds of millions of dollars on new construction, maintenance, and renovations of facilities each year.  Along with the Department of Justice, the USPS Office of Inspector General will aggressively investigate those who would engage in this type of fraud.” said Special Agent in Charge Kenneth Cleevely of the United States Postal Service, Office of Inspector General.

Upon conviction for a violation of Title 18, United States Code, Section 641, theft of government funds, Rymar faces a maximum sentence of ten years in prison and a fine of up to $250,000. The government is also seeking restitution of the stolen funds. The government has also sought forfeiture of a number of financial accounts held by Rymar, including two accounts that are valued over $1.2 million.

The investigation of this case was conducted by the of the United States Postal Service, Office of Inspector General.  The case is being prosecuted by Assistant U.S. Attorney Steven Cares.