Two men have been charged in federal court for their alleged roles in a scheme to acquire and sell counterfeit United States postage stamps, according to a July 23 announcement.
A federal grand jury returned an indictment on April 21 charging John Patrick Best, 55, of Hoschton, Georgia, and Kevin Douglas Padgett, 48, of Phenix City, Alabama, with conspiracy to commit money laundering related to the purchase and distribution of large quantities of counterfeit postage stamps. The indictment also charges Best with conspiracy to commit mail and wire fraud, possession with intent to sell counterfeit postage stamps, concealment money laundering, and spending money laundering.
United States Attorney Thomas Govan said, “This case reflects the strong partnership between our office and federal law‑enforcement agencies committed to protecting the U.S. mail and the financial system. We appreciate the dedicated work of the Postal Inspection Service, IRS Criminal Investigations, and Homeland Security Investigations in bringing these allegations to light.”
Shameka Jackson, Inspector in Charge of the Houston Division for the U.S. Postal Inspection Service (USPIS), said, “The US Postal Service is committed to protecting consumers and the US Mail from fraudulent activity and has no tolerance for people who create, distribute or use counterfeit postage. These practices undermine the inherent trust of the USPS brand, and postal inspectors will continue work with our law enforcement partners and federal prosecutors to disrupt these criminal schemes and bring those responsible to justice.”
According to court records, beginning around January 2024, Best and Padgett allegedly conspired to purchase counterfeit U.S. postage stamps from suppliers in China for resale within the United States. The indictment alleges that they formed a shipping supply company in Georgia as part of their operation. They are accused of purchasing products listed as “Patriotic Series American Independence Day Doodle Stickers,” which were then resold as genuine U.S. flag forever stamps through an online vendor marketplace under a new business name created by Best’s media company position; Padgett allegedly packaged and mailed them from various locations including post offices in Smiths Station and Phenix City.
Special Agent in Charge Demetrius Hardeman from IRS Criminal Investigation Atlanta Field Office said, “The defendants are accused of moving approximately $1.7 million in proceeds through multiple bank accounts in an effort to disguise the source and ownership of their illicit profits from the counterfeit postage stamps scheme… IRS Criminal Investigation special agents excel at unraveling complex money flows.”
The government alleges that at least $1.7 million was generated from selling approximately 6.48 million counterfeit stamps before authorities seized another half-million before distribution; attempts were made by both men allegedly concealing funds through multiple bank transactions.
Padgett pleaded guilty on June 30 to money laundering conspiracy; his sentencing is scheduled for October, while Best appeared before federal court on July 22.
Both face up to 20 years imprisonment if convicted along with fines or restitution; there is no parole under federal law.