Federal contractor indicted for embezzling from USPS
A Rochester Hills construction contractor is facing a federal charge for allegedly stealing more than $1.2 million from the U.S. Postal Service for repair work on buildings.
The U.S. Attorney’s Office – Eastern District of Michigan announced March 25 the grand jury indictment of Michael Rymar, 59, for embezzling funds from the USPS through his company, Horizons Materials & Management, LLC.
An indictment is a charge, not evidence of guilt.
According to the indictment, from 2015 to 2018, USPS engineers awarded Rymar’s company more than $5 million in contracts for repairs on buildings in Michigan and New York. It’s alleged that documents provided by Rymar contained “false and fraudulent statements, oftentimes dramatically and falsely overstating the amount he paid subcontractors to complete the repairs.”
It’s also alleged that Rymar falsely inflated the amount he paid his employees and the cost of materials for the jobs. During the alleged fraudulent scheme stretching more than three years, Rymar is accused of stealing more than $1.2 million of the $5 million awarded contracts. As part of the Indictment, the government is seeking recovery of at least $1.2 million from Rymar.
“Today’s indictment underscores our commitment to safeguarding taxpayer funds and to prosecute those individuals who use fraudulent schemes to line their pockets with the people’s money,” Acting U.S. Attorney Saima Mohsin stated in a news release.
If convicted, Rymar faces up to 10 years in prison and a $250,000 fine.
The charge falls under Title 18, Section 641, theft of government funds.
The case was investigated by the USPS office of inspector general and is being prosecuted by Assistant U.S. Attorney Steven Cares.