California Postal Vehicle Operations Manager Pleads Guilty To $4.4 Million Fraud And Corruption Charges

OAKLAND – Balvinder Singh Chadha pleaded guilty in federal court in Oakland, California, this week to committing wire fraud and conspiring to violate the federal conflict of interest statutes, United States Attorney MELINDA HAAG announced. His wife and co-defendant Jaspinder Kaur Chadha pleaded guilty earlier on March 28, 2012 to conspiring with Mr. Chadha.

In pleading guilty, Mr. Chadha, 45, of Union City, California, admitted that he was an investor in and served as the de facto head of a company called Golden Pacific Logistics, Inc. (“GPL”) while employed as Manager of Postal Vehicle Service Operations at a United States Postal Service (“USPS”) facility in Oakland, California. GPL was established for the purpose of obtaining truck leasing contracts with the USPS unit managed by Mr. Chadha. In July 2005, Mr. Chadha endorsed GPL during the procurement process for an USPS truck leasing contract that was ultimately awarded to GPL. Over the next four years, GPL billed USPS for trucks that were never leased, mileage that was never incurred, and servicing and maintenance costs that were never authorized under GPL’s contract. Using his USPS position, Mr. Chadha authorized payments to GPL and requested at least 18 modifications of the original contract, which extended the time period of the contract and increased the number of trucks authorized for leasing. All told, GPL billed and received $6,434,469.19, which included at least $4,432,156.82 in fraudulent billing.

Additionally, Mr. Chadha and Ms. Chadha admitted to conspiring to violate the federal conflict of interest statute, which prohibited Mr. Chadha, as an USPS employee, from willfully participating in a contract in which he and his wife had a financial interest. The Chadhas admitted that they engaged in a variety of measures to conceal Mr. Chadha’s association with GPL and create the appearance that Mr. Chadha and GPL were engaged in an arm’s length business relationship.

The United States Attorney charged the Chadhas in a two-count information filed on March 16, 2012. Count One charged him with committing wire fraud, in violation of 18 U.S.C. § 1343, and Count Two charged him and co-defendant Jaspinder Singh Chadha, 39, with conspiring to willfully violate the federal conflict of interest statute (18 U.S.C. §§ 208 and 216(a)(2)), in violation of 18 U.S.C. § 371. In addition, the information contains a forfeiture allegation against Mr. Chadha in relation to the wire fraud offense. Pursuant to their respective plea agreements, Mr. Chadha pled guilty to both counts and Ms. Chadha pled guilty to Count Two.

“As federal agencies, we have a responsibility to combat fraud and ensure taxpayers’ dollars are not being misspent,” said Clark Settles, special agent in charge for Homeland Security Investigations San Francisco. “These guilty pleas should send a message about the serious consequences facing those who seek to exploit their position for personal gain at the expense of the American people.”

Joanne Yarbrough, Special Agent in Charge for the Major Fraud Investigations Division of the United States Postal Service Office of Inspector General said, ”the vast majority of Postal Service employees and contractors are hard working professional individuals dedicated to the furtherance of Postal Service operations. However, when employees and contractors violate the public trust, as in this case, the Major Fraud Investigations Division will investigate those individuals aggressively and seek prosecution to the fullest extent of the law. The Major Fraud Investigations Division appreciates the US Attorney’s Office in the Northern District Of California for prosecuting the case and the assistance provided by the U.S. Immigration and Customs Enforcement in the investigation.”

Mr. Chadha and Ms. Chadha were both released on bond. Their sentencings are scheduled for July 11, 2012 before Judge Phyllis J. Hamilton in Oakland. The maximum statutory term of imprisonment for wire fraud, in violation of 18 U.S.C. § 1343, is 20 years and the maximum statutory term of imprisonment for conspiracy, in violation of 18 U.S.C. § 371, is 5 years. Additionally, each count has maximum statutory penalties of $250,000 or twice the gross pecuniary gain or twice the gross pecuniary loss, whichever is greater; 3 years of supervised release; $100 mandatory special assessment; and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Andrew S. Huang is the Assistant U.S. Attorney who is prosecuting the case with the assistance of legal assistants Vanessa Vargas and Jeanne Carstensen. Assistant U.S. Attorney Susan Gray also provided assistance with the investigation and prosecution of this case. The prosecution is the result of a multi-year joint investigation by the United States Postal Service Office of Inspector General’s Major Fraud Investigations Division and the Asset Identification and Removal Group of Homeland Security Investigations.

11 thoughts on “California Postal Vehicle Operations Manager Pleads Guilty To $4.4 Million Fraud And Corruption Charges

  1. Resident Officer Restructuring
    Whereas: The APWU membership continues to shrink at drastic rates.
    Whereas: The amount of National Resident Officers has not decreased at all while their represented members have.
    Whereas: Compared to our sister Postal Labor organizations we are exceptionally top heavy with National Officers.
    Whereas: It makes fiscal sense in the current climate to have this discussion.
    Be it resolved: that the APWU restructure the resident officer structure as follows and institute (by updating the constitution appropriately) said structure effective for the 2013 National Election.
    Eliminate the position of Industrial Relations Director and merge these duties into the Executive Vice President position, to include the oversight of the industrial relations department. Increase the Executive V.P. salary by 15%.
    Eliminate the position of Asst. Legislative Director.
    Eliminate the Director of Organization position, the Research and Education position and the Human Relations position. Create a position titled Union Growth & Improvement Director which will be responsible for all aspects of the three eliminated positions. This positions salary would be the same as the individual salary of the positions it is replacing plus 15%. This position would replace the Industrial Relations Director on the executive board.
    Decrease the amount of Clerk craft assistant directors from 3 to 2.
    Decrease the amount of Maintenance craft assistant directors (currently 2) and National Rep at Large (currently 1) to just 1 assistant director. The lone assistant director would assume the duties of the National Rep. at Large.
    Eliminate the assistant MVS craft director position. Change Article 21 (c) by deleting “the Assistant Director of the MVS division” and replacing it with “the National President will appoint a current MVS NBA as the Director of the MVS division and he/she”.
    For the purpose of clarity, no member running for any of the above mentioned positions (excepting the V.P. position) will be considered the incumbent in any 2013 election literature including the ballots.
    For the purpose of expediency the membership would ask that the Secretary/Treasurer be responsible for making appropriate housekeeping changes to the following Articles (7, 8, 9, 11, 13, 21, and any others missed herein) to align them with the results of this resolution.

  2. This also highlights the Hypocrisy in our System of Justice. Why have the Robber Banker Barons not been served up the same kind of Justice? Do the Banks have no accountability to our Lawmakers at the White House and our Congress or are they all sleeping in the same bed together? Too much focus on Race,witch is a limitation we put on ourselves, and not enough on corruption which is just the way this Countries Leaders and Power Elite want it. Why are so ignorant as a Middle Class to not see through this fact. It’s not going to change a single thing wallowing in Racism. It is one of many reasons why the Middle Class is on the “Endangered Species” list. Note that as unemployment goes down no one reports on a key fact. What are the wages and benefits that go with these so called jobs? Are they giving the recipients a “Living Wage”? Likely not.

  3. We all have indian and philipino coworkers. Look at how much hate we have for our fellow indian coworkers. No wonder, minorities make shit load of money every year in USPS by filing discrimination EEO’s and they win. This forum is prime example of whats wrong with USPS. Too many racists working in USPS, costing USPS money due to their ignorance and racism.

  4. Where’s the controller, who’s suppose to be examining the costs, expenses, etc…? That MDO crook was a little shorty of a rag on his head. The guy is a devil in turban wear. A sneak, crook, scam artist, illegal, and some dumb wise guy in upper management liked this SOB to promote him to MDO at Bay Valley. Shows how stupid they are in management positions at Bay Valley. The most crooked of thieves are the ones promoted to higher positions. Turban head was a rear end kisser all the way. Evil, and smelly, wearing the same old rag on his head every day. Why not show his ugly mug shot in the news??

  5. That was a turban head wrap arrogant, bearded a-hole of a MDO.
    He is a very evil head wrap..thinks everyone is not as smart as himself.
    Over $4 million was fradulaent billings, (??), the whole billing is fradulent, and they should all get the maximum jail sentence.

    DEPORT them back to India land where they can rot.

  6. Should check into Potter and Donohoe on the FSS contracts. 10 to 1 they have relatives or kidsa working for the contractor. How did Potter become head of the Washington D.C. airpot authority

  7. The Pigs of the OIG strike again!, probably manufactured this to prove they belong, normally OIG goes for the craft for setups.

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