Camden, NJ – A Franklinville, New Jersey, man was arrested on October 16, 2014 by federal agents of the U.S. Postal Inspection Service for allegedly mailing fraudulent invoices for non-existent workbooks to more than 70,000 schools throughout the United States, U.S. Attorney Paul J. Fishman announced.

Robert S. Armstrong, 44, was charged by complaint with one count of mail fraud. He appeared this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court.

According to documents filed in the first case:

In July 2014, Armstrong used commercial mail receiving agents to open mail boxes in Sewell, New Jersey, and Las Vegas, Nevada, under the name of his business, Scholastic School Supplies LLC. Armstrong then drafted fraudulent invoices seeking payments of $647.50 for 50 math or language workbooks at $12.95 each. In order for the invoice to appear legitimate, Armstrong included a telephone number and a Federal Employer Identification Number (FEIN) for Scholastic School Supply. The invoices also included International Standard Book Numbers (ISBNs), unique identifiers assigned to each book published in the United States. All three numbers were phony – the telephone number was out of service, the FEIN did not exist, and the ISBNs were either non-existent or did not correspond to the workbooks listed on the invoices.

Armstrong then contracted with a legitimate bulk mailing company in Maine and had the phony invoices mailed to more than 73,000 schools across the United States. Each invoice included a payment envelope preaddressed to Scholastic School Supply’s Sewell or Las Vegas address.

In response to the phony invoices, multiple schools sent monies to Scholastic School Supply. Armstrong opened at least eight bank accounts for Scholastic School Supply into which he deposited the checks from the victim schools. Seizure warrants for five of those accounts have seized $281,440.46 to date, with a pending warrant seeking to recover an additional $45,232.00 in fraudulent proceeds from another account. The remaining two bank accounts were closed in September 2014.

(October 24, 2014) A postal employee helps nab an alleged mail fraud thief Charged Last Week in Similar Scheme

The Franklinville, New Jersey, man was arrested today by federal agents of the U.S. Postal Inspection Service – for the second time this month – for allegedly mailing fraudulent invoices for non-existent advertisements to colleges and trade schools throughout the United States, U.S. Attorney Paul J. Fishman announced.

Robert S. Armstrong, 44, was charged by superseding complaint with two counts of mail fraud. He appeared this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court for an initial appearance on the superseding complaint.

According to documents filed in the second case:

Postal inspectors learned Armstrong – while out on bail following his Oct. 16, 2014, court appearance on the initial charge – was continuing to ask for and pick up mail in the name of one of his companies, Scholastic School Supply. On Oct. 21, 2014, he picked up mail from a Post Office box in Malaga, New Jersey, which he had opened in the names of Scholastic and another of his companies, The Trend Publishing. Armstrong had retrieved mail, opened it and discarded what appeared to be two check stubs bearing the names of two colleges and written in the amount of $495 payable to Trend. A postal employee sent the discarded check stubs to postal inspectors. 

A postal inspector contacted the two colleges listed on the check stubs and received a copy of the invoice from Trend addressed to Victim College 1. It appeared very similar in format to the Scholastic invoices except that it sought payment for what is believed to be advertising for the college: $495 for a 5-inch by 8-inch glossy ad to be placed in the “College Edition (Fall 2014 Edition).”  The invoice included a telephone number and a Federal Employer Identification Number (FEIN) for Trend. As with the Scholastic scheme, both numbers were phony.

The dean of finance from the second college listed on the check stubs said his office had mailed a check for $495 to Trend and that no one in the purchasing department had any knowledge of ordering any advertisement from the company.

On Oct. 22, 2014, the postal inspector received bank records from Wells Fargo Bank for accounts opened by Armstrong, including an account in the name of Trend. From July 2014 through August 2014, Armstrong deposited 59 checks for $495 each from various colleges and trade schools throughout the United States – including a law school and a medical school – for a total of $29,205. Bank records revealed that he deposited additional $495 checks from various businesses, several of which appear to be related to automobile sales and service.

Employees at three additional colleges confirmed to postal inspectors that they had received invoices from Trend seeking payment for $495 for similar advertising and they mailed payments to Trend. They also said they did not know what the “College Edition (Fall 2014 Edition)” was.

Each count of mail fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Armstrong or twice the gross losses to the victims of his offense.

U.S. Attorney Fishman credited law enforcement officers of the U.S. Postal Inspection Service, under the direction of Inspector in Charge David Bosch in Philadelphia; the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Sean F. Dalton; the Gloucester County Office of Consumer Protection, under the direction of Harold Spence, Director of Consumer Affairs; the Washington Township Police Department, under the direction of Raphael Muniz, Chief of Police; and the Franklin Township Police Department, under the direction of Mike Rock, Chief of Police, with the continuing investigation leading to today’s arrest.

Individuals with any information about possible fraudulent conduct may call postal inspectors at 877-US MAIL 5 (877-876-2455).

The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.

The charges and accusations in the complaint are merely accusations, and the defendant is presumed innocent unless and until convicted.