Former New Mexico Postmaster gets probation for stealing over $450,000 in postal funds

Former New Mexico Postmaster gets probation for stealing over $450,000 in postal fundsFormer Postmaster of Capitan Post Office Sentenced for Federal Embezzlement Conviction

August 14, 2015 – ALBUQUERQUE – Kristi K. Sepkowitz, 56, of Alto, N.M., was sentenced yesterday afternoon in federal court in Las Cruces, N.M., to three years of probation and a $1,000.00 fine for embezzling money belonging to the United States.  Sepkowitz was the Postmaster of the Capitan Post Office in Lincoln County, N.M., when she committed the offense.

In her plea agreement, Sepkowitz acknowledged that as Postmaster of the Capitan Post Office, she held a position of trust with respect to funds belonging to the U.S. Postal Service that came into her possession.  Sepkowitz admitted that between Feb. 2012 and Dec. 2013, she betrayed that trust by engaging in an unlawful scheme pursuant to which she embezzled and converted funds, including cash and money orders, belonging to the U.S. Postal Service to her own use.

During the course of the scheme, Sepkowitz issued postal money orders to herself without making appropriate payment.  She also took cash from daily postal deposits and used the cash for her own purposes.  Sepkowitz attempted to pay back the postal funds she embezzled by writing checks on her personal bank account and depositing the checks with the daily postal deposits.

According to court filings, Sepkowitz embezzled and converted more than $450,000.00 in postal funds over the course of the scheme.  She has fully repaid the U.S. Postal Service for the postal funds she embezzled and converted to her own use.

This case was investigated by the U.S. Postal Service, Office of Inspector General and was prosecuted by Assistant U.S. Attorney Brock E. Taylor, of the U.S. Attorney’s Las Cruces Branch Office.

source: US Attorney’s office for District of New Mexico

Former New Mexico Postmaster Pleads Guilty to Embezzling over $450,000 in postal funds

21 thoughts on “Former New Mexico Postmaster gets probation for stealing over $450,000 in postal funds

  1. I did not know Capitan ,N.M. office brought in 400 a week over the counter never mind 450k over any period.I was aware of all operation offices in Southern N.M.from 1993-to 1999 as Postmaster Of Las Cruces during that period and never hear of such actions from any PM in that area or even in the whole State.How is god name did she handle that much money and were was her direct report who is suppose to montior that area Postmasters?

  2. I worked for the po for 32 years , during my time when someone got off easy like this it was because others in higher up positions were involved . If you are the low man or women in the crime, you take the fall get off easy for keeping quiet. As for the statement by Ms. Demeanor that the fact she was management could never have anything to do with the light sentence. I say it has everything to do with it. Does she think the postal inspectors have no say in how the feds pursue the case? I never saw a case of management pursued the same way as that involving a craft person. Nor will you ever see the news coverage be as great on a management person, if the po can keep it quiet, while cases involving craft were always relayed to the news agencies quickly!

  3. She was doing a pilot program for postal banking, she took out a Small business loan to fund her cosmetics store.

  4. You know craft will get worse treatment because management will bury them to get their jollies and act tough. They’ll go easy on other management because they’re all a bunch of inbred (business wise) good ol’ boys and girls who look out for each other because so many of them can’t be trusted, and they know it.
    Yet, the level of mistrust is astounding. Supervisors where I am are following carriers just to their first stops on the routes to see if they stop for breakfast, take another break, etc. They tell the carrier they’re going to be behind them, and management thinks we’re stupid enough to try anything when we know we’re being tailed? Any carrier who knows a manager is behind them and pulls something stupid anyway deserves what they get. But if a carrier for example extended his break by two minutes, which in some offices is a terrible offense, but still runs the route in eight, will that cost the USPS 450K? So much attention to the trivial, and blind eyes to the real crimes and incompetence. That’s management for you.

  5. I retired after 30 plus years with the Postal Service both here in New Mexico and in Illinois. I took pride in the trust bestowed on me by my patrons and employer. I would not betray that trust even in a minute way. I would and should be punished if in fact I
    did a disgraceful act such as this postmaster. It looks as though the higher up the ladder you climb the less pride you must maintain.

    • She didn’t really need the money, but the comment on trying a new banking loan program is truly appearing to be the case.
      Repaying the PO (should be with interest added) reflects her abilities to show her high pay status could cover the money being returned.

    • Simple.

      The “repayment”, was actually just the money she stole in the first place.

      Postal math strikes again.

    • she can afford this since her husband is also upper management… and like everyone else I would like to know if she will continue to work for the postal service… ..and she does sell cosmetics (wonder if that is at work also ) .. Like I have said before, there is always a double standard for mgmt and craft employees.

  6. Where did she get the money to “fully repaid” what she embezzled? Stealing from another employer?

    • See above.

      Most likely, the “repayment” was done with the money she stole in the first place !

  7. Obvious double standards are in play. Postmaster steals $450,000 gets 3 year probation. Can a Craft employee expect the same treatment? Doubt it!

    • Hal Zapken:
      It was the federal court system that gave her the probation, not the USPS…..IDIOT!!!! And the ONLY reason she received probation, was because she paid back the money she stole. Do you really think that it was because she was management?? No wonder you’re a craft employee!!

      • Name dropping is not very nice you know.
        The possible reason she could repay the stolen funds would be her salary with the PO and her personal financial holdings.
        Almost a half a million dollars is a lot and if she repaid it since Dec 2013, she had the ability or a good sugar Daddy.
        Question is, did she really need the money? Also, could she still be employed by the PO (not mentioned if she was fired). Did the PO ask the U.S. attorney to go easy on her due to the repayment? Too much missing information!

      • Vanessa Van-Kellogg was both an Orange County postal clerk and a prolific magician, of sorts.
        During her shifts at El Toro’s main post office in Lake Forest from October 2011 through January 2013, at least $6,000 in stamps disappeared without payment from the branch’s inventory.

        We may never know. There won’t be a trial. This month, a federal grand jury for the Central District of California indicted the postal employee for committing $102.30 in the thefts during a 2012 shift and she quickly signed a misdemeanor plea agreement acknowledging the remainder of the embezzlement in exchange for potential leniency.

        At a future sentencing date inside the Ronald Reagan Federal Courthouse in Santa Ana, Van-Kellogg, who was born in 1965, faces a maximum punishment of incarceration for a year and a $100,000 fine.

        She will be ordered to pay the post office full restitution, according to court records.

      • Ms. Demeanor YOUR the idiot here. And if you are in Mgt. it just confirms YOUR an idiot! It’s very clear that Mgt. and craft employees are treated differently. We just had a Post Master get the Postal service into a multi-million law suit because she ordered the BRM mail position to be left unfilled for three weeks. This was done during harvest and one of the largest co-ops had no contracts for over three weeks! It took several months to have her removed from her position….just to have her reassigned somewhere else. We are still working on her REMOVAL from the PO for physical harassment as well as sexual harassment. Could she be the next PMG, she has all the qualities! This PM should have been put in jail for a long time just for being a thief!!

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