Two men charged in alleged $1.7 million counterfeit postage scheme

Date: July 23, 2026

Contact: newsroom@ci.irs.gov

Two men have been charged in federal court for their alleged roles in a scheme to acquire and sell counterfeit United States postage stamps.

On April 21, 2026, a federal grand jury returned an indictment charging John Patrick Best of Hoschton, Georgia, and Kevin Douglas Padgett 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 further 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, Special Agent in Charge Demetrius Hardeman, IRS Criminal Investigation Atlanta Field Office, and Inspector in Charge Shameka Jackson of the U.S. Postal Inspection Service (USPIS) Houston Division made the announcement. 

“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,” said United States Attorney Thomas Govan. “We appreciate the dedicated work of the Postal Inspection Service, IRS Criminal Investigations, and Homeland Security Investigations in bringing these allegations to light.”

“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,” said Special Agent in Charge Demetrius Hardeman, IRS Criminal Investigation Atlanta Field Office. “Although individuals may attempt to disguise illicit profits through intricate financial maneuvers, IRS Criminal Investigation special agents excel at unraveling complex money flows and revealing the hidden trail they leave behind.”

“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,” said Shameka Jackson, Inspector in Charge of the Houston Division. “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 the indictment and other court records, beginning in or around January 2024, Best and Padgett conspired to purchase counterfeit U.S. postage stamps from suppliers in China and resell the stamps within the United States. As part of the alleged scheme, the defendants formed a shipping supply company in Georgia and opened bank accounts in the company’s name.

The indictment alleges that Best and Padgett knowingly purchased counterfeit postage stamps from sources in China and elsewhere. The conspirators purchased a product listed by the vendor as “Patriotic Series American Independence Day Doodle Stickers” and resold them as genuine U.S. flag forever stamps. After receiving the counterfeit stamps, Best allegedly used his position with a media company to advertise and sell them through an online vendor marketplace under the newly created business name. Padgett then allegedly packaged and mailed the counterfeit stamps from multiple locations, including post offices in Smiths Station and Phenix City, Alabama.

According to the indictment, the scheme generated at least $1.7 million in proceeds. The government alleges that the proceeds were derived from the sale of approximately 6,483,700 counterfeit stamps, with an additional 544,596 stamps seized before distribution. It is further alleged that Best and Padgett attempted to conceal the illicit funds through a series of financial transactions involving multiple bank accounts.

On June 30, 2026, Padgett pleaded guilty to the money laundering conspiracy charge. His sentencing hearing is scheduled in October. Best made his initial appearance in federal court on July 22, 2026.

The charges against both men carry a potential maximum sentence of up to 20 years in federal prison, along with substantial monetary penalties and restitution. There is no parole in the federal system.

The U.S. Postal Inspection Service investigated the case with assistance from IRS Criminal Investigation and Homeland Security Investigations. Assistant United States Attorney Joel Feil is prosecuting the matter.

IRS-CI is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. It is the only federal law enforcement agency with investigative jurisdiction over violations of the Internal Revenue Code. IRS-CI has 18 field offices located across the U.S. and maintains an international presence through attaché posts abroad.