The president and owner of a Connecticut mail consolidation and transportation service is accused of defrauding clients by dumping bulk mailings at recycling centers instead of shipping them to the U.S. Postal Service for delivery as promised.
A federal grand jury in New Haven, CT, returned an indictment Jan. 24 charging Thomas J. Rueli of Springfield, MA, and Total Logistics Services Inc., East Windsor, CT, with 14 counts of mail fraud, said Kevin J. O'Connor, U.S. attorney for Connecticut.
Rueli was arrested Jan. 26 at his offices and presented in federal court in Hartford before U.S. Magistrate Judge Donna F. Martinez, at which time the indictment was unsealed. He was released after posting $25,000 bond.
According to the indictment, Total Logistics contracted to collect bulk mailings from advertisers or their printing shops and was paid to transport the mail to postal facilities around the country. From January to June 2001, Rueli and his company billed clients for transporting mail alleged to have been sent to a recycling center to dispose of it, the indictment said.
If convicted, Rueli faces up to five years in prison and a fine of $250,000 on each count. Total Logistics faces a maximum fine of $500,000 on each count. The case was investigated by the U.S. Postal Inspection Service, FBI and the criminal investigation unit of the IRS.
When called, Total Logistics' number was out of service.