Federal Money Order Fraud Charges
Money orders. You might think they're anonymous - cash in paper form, no bank account needed, untraceable. That's what makes them attractive for certain transactions. You can buy one at the post office, a convenience store, a grocery checkout. Fill in the amount, hand it over, walk away. No questions asked. That's also what makes federal prosecutors extremely interested when something goes wrong with them.
Federal money order fraud charges carry serious prison time. Not county jail. Federal prison.
Welcome to Spodek Law Group. We handle federal fraud defense including money order fraud cases across the country. What you need to understand right now: there's a dedicated federal statute for money order fraud - 18 U.S.C. § 500 - and prosecutors routinely stack additional charges on top of it. The result is federal exposure that can exceed 95 years. That's not a typo. Ninety-five years.
The Federal Statute Most People Don't Know Exists
18 U.S.C. § 500 is the dedicated federal statute for money order fraud. Most people have never heard of it. It covers specific conduct that Congress decided warranted its own criminal prohibition, seperate from the general fraud statutes.
What the statute prohibits:
1. Issuing any postal money order without having previously recieved the full payment
2. Embezzling or stealing blank money order forms
3. Possessing stolen money orders knowing they've been embezzled or stolen
4. Transmitting or presenting a fradulent money order with intent to defraud
5. Forging or counterfeiting money orders or the signatures on them
Each offense under 18 U.S.C. § 500 carries up to 5 years in federal prison. But thats just the starting point.
The USPS Postal Inspection Service and USPS Office of Inspector General investigate these cases. Between FY 2010 and 2012 alone, according to USPS OIG, they completed 136 money order embezzelment cases resulting in removal, arrest, and prosecution of postal employees. The investigations continue constantly - theres a pipeline that runs from internal USPS audits to federal grand jury indictments. Once your in that pipeline, it moves fast.
Heres the uncomfortable reality according to USPS OIG's own audit findings: postal service money order controls are not sufficent to detect fraud in a timely manner. The USPS dosent sufficiently monitor money order transactions at retail units. What this means for you: fraud often builds for months or years before detection. The loss amount keeps growing. By the time they catch it, the numbers have multiplied - and so has your eventual sentance.
How Money Order Fraud Becomes a Multi-Decade Federal Case
Federal prosecutors almost never charge money order fraud under 18 U.S.C. § 500 alone. They stack charges. The same conduct that violates the money order statute also triggers other federal offenses - each with its own maximum sentence. This is standard practice in federal fraud prosecution.
The charge multiplication looks like this:
1. 18 U.S.C. § 500 (Money Orders) - 5 years per offense
2. 18 U.S.C. § 1341 (Mail Fraud) - 20 years; 30 years if a financial institution is affected
3. 18 U.S.C. § 1343 (Wire Fraud) - 20 years; 30 years if a financial institution is affected
4. 18 U.S.C. § 1344 (Bank Fraud) - 30 years
5. 18 U.S.C. § 1956 (Money Laundering) - 20 years
6. 18 U.S.C. § 1028A (Aggravated Identity Theft) - mandatory +2 years consecutive
Add those up. One money order fraud scheme can create theoritical exposure exceeding 95 years in federal prison.
The trigger points are specific. Using the postal service to send or recieve anything related to the scheme - thats mail fraud. Electronic communication at any point - wire fraud. Depositing money orders at a bank - bank fraud. Using the proceeds for anything, including buying more money orders - money laundering. Using a fake ID to open accounts or cash instruments - aggravated identity theft with mandatory consecutive time that cant be reduced.
Matthew Dundas in New York issued 105 fraudulent money orders to himself while working for USPS. Total amount: $76,976.61. According to DOJ press releases, he faces up to 5 years federal prison, a $250,000 fine, and full restitution. But that was charged under the money order statute basicly alone. When prosecutors add charges, the exposure multiplys dramaticaly.
Money orders might seem anonymous. No bank account needed to purchase them. Cash equivalent. But every postal money order has a serial number tracked in federal databases. Banks report deposits over certain thresholds and flag suspicious activity. Surveillance cameras capture you at the counter. The paper trail that seems untraceable becomes the evidence chain that convicts you. Investigators can reconstruct months of activity from records you didnt even know existed.
What Happens When They Catch You
Real cases. Real sentences.
Dewayne Morris Sr. was a USPS supervisor in Brooklyn. In February 2021, 10,000 blank postal money orders went missing from the Utica Avenue Post Office he supervised. Each blank money order could be filled out for up to $1,000 - making the potential value $10 million. His son, Dewayne Morris Jr., distributed the stolen money orders to co-conspirators throughout the country. Eight other people used counterfeit driver's licenses to open bank accounts throughout the United States, then deposited the stolen money orders to cash them out. The operation was sophisticated. Multiple states. Multiple banks. Fake identities. Total scheme value according to DOJ: $5.1 million. After trial in January 2024, a federal jury convicted both Morris Sr. and Morris Jr. on conspiracy and bank fraud charges. The sentences came down in January 2025. Morris Sr. got 7 years. Morris Jr. got 12.5 years in federal prison.
Twelve and a half years. For money orders.
Jaleesa Wallace was sentenced to 30 months federal prison for her role in the Brooklyn money order theft scheme. She was also ordered to pay more than $4 million in restitution - money she'll likely be paying back for decades. Other co-conspirators received varied sentences for their roles converting stolen money orders to cash.
Scott Kelley was the Team Leader of the USPS Mail Fraud Unit from 2015 to 2022. His job was investigating lottery scams that targeted elderly victims - the kind of scams where criminals trick seniors into mailing cash payments for fake winnings. Then he became Team Leader of the Mail Theft Unit through August 2023. In September 2025, federal prosecutors in Massachusetts charged him with stealing over $330,000 in cash from packages mailed by elderly fraud victims - the very people he was supposed to protect. The 45-count indictment includes five counts of wire fraud, five counts of mail fraud, five counts of mail theft by postal officer, theft of government money, 23 counts of money laundering, structuring to evade reporting requirements, and five counts of filing false tax returns. How did money laundering get involved? He allegedly used almost $160,000 of stolen cash to buy postal money orders, which he then deposited into his own bank accounts or used to pay credit card bills.
The irony runs deep. The man who investigated mail fraud committed mail fraud. The man who protected the postal system used postal money orders to launder money he stole from elderly victims. Federal prosecutors do not find that amusing. They find it aggravating.
Todd Spodek and the team at Spodek Law Group have defended federal fraud cases including money order fraud. The earlier you have counsel, the more options exist. Before you talk to Postal Inspectors. Before you respond to subpoenas. Before statements you make become evidence prosecutors use at trial.
If you're under investigation or concerned you might be:
- Do not talk to Postal Inspectors or USPS OIG investigators without counsel present
- Do not destroy any documents or money order records - destruction can become its own charge
- Do not discuss the matter with co-workers or others potentially involved
- Do not deposit or cash any questionable money orders while under investigation
- Contact a federal defense attorney immediately
When Your Ready
If you're facing federal money order fraud charges - or you're concerned that investigation is coming - Spodek Law Group can help you understand where you stand and what options exist.
The consultation is free. Theirs no obligation. What you'll get is an honest assessment of the evidence, the likely charges, and the realistic outcomes based on how these cases are actually prosecuted and sentenced in federal court.
Call us at 212-300-5196. The federal statute of limitations for fraud is generally 5 years, but related charges can extend that timeline. The government builds these cases over time - sometimes years of investigation before anyone gets charged. The earlier you have defense counsel, the more leverage exists to shape how your case develops. Don't wait until Postal Inspectors show up at your door or your workplace with a warrant.
Were here when you need us.
