Grumman llv (grumman long life vehicle) is the vehicle primarily used by united states postal service (usps), photo taken in potsdam post office (13676), new york state, usa
Grumman LLV (Grumman Long Life Vehicle) is the vehicle primarily used by United States Postal Service (USPS), Photo taken in Potsdam Post Office (13676), New York State, USA

Postal worker sentenced for $77K money order fraud scheme in upstate New York

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1 min read
January 17, 2026

ALBANY, N.Y. – A Rensselaer County postal worker who admitted to stealing nearly $77,000 in fraudulent money orders while employed by the United States Postal Service was sentenced this week to probation, community service, and a fine.

Federal prosecutors said Matthew Dundas, 26, of Petersburgh, was sentenced on January 14 to two years of probation, 80 hours of community service, and ordered to pay a $4,000 fine after pleading guilty to money order fraud.

According to court documents, between January 2023 and September 2024, Dundas used his position with the Postal Service to issue 105 money orders to himself without paying for them, stealing a total of $76,976.61. Officials said Dundas repaid the stolen amount before entering his guilty plea.

Acting U.S. Attorney John A. Sarcone III said the case represents a serious breach of public trust. “Government employees stealing from taxpayer dollars is an egregious betrayal of the public trust and will be met with swift and decisive action,” Sarcone said. “Our Office will continue to root out any self-dealing and fraud in the government.”

Matthew M. Modafferi, Special Agent in Charge of the Northeast Area Field Office for the USPS Office of Inspector General, said the investigation underscores the agency’s commitment to integrity within the Postal Service. “When a Postal Service employee decides to break the public’s trust and participates in criminal acts, USPS OIG Special Agents will work tirelessly to bring those responsible to justice,” Modafferi said.

The case was investigated by the United States Postal Service Office of Inspector General and prosecuted by the U.S. Attorney’s Office for the Northern District of New York.

Phil Stilton

Phil Stilton is the Editor and Publisher of Shore News Network, an independent digital newsroom providing original reporting on New Jersey, national news, government, public policy, public safety, courts, and community affairs.

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