Rafael Grullon and Aldo Palomino — Complaint

Summary

A criminal complaint in the Southern District of New York charging Rafael Grullon and Aldo Palomino, Jr., described as Postal Service officers and employees, over mail sent by the New York State Department of Labor containing unemployment insurance benefit payments. Count Two charges theft of mail by an officer or employee under Title 18, United States Code, Sections 1709 and 2, from about July 2020 through about November 2020, and Count Three charges a conspiracy to receive bribes from about May 2020 through about December 2020. The first count's text, under Section 371, alleges theft and possession of hundreds of pieces of that mail by Abreu. The affidavit states that approximately 747 pieces of NYS DOL mail were recovered from Room 135 of a hotel on or about December 2, 2020.

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Full text

mail, and abstracted and removed from such letters, packages,
bags, and mail, articles and things contained therein, and
secreted, embezzled, and destroyed such letters, postal cards,
packages, bags, and mail, and articles and things contained
therein, and (ii) knowingly buy, receive, or conceal, or
unlawfully have in their possession, any letter, postal card,
package, bag, or mail, or any article or thing contained
therein, which has been so stolen, taken, embezzled, or
abstracted, as herein described, knowing the same to have been
stolen, taken, embezzled, or abstracted, to wit ABREU, stole,
received, and aided and abetted the theft, receipt, and
possession of hundreds of pieces mail sent by the New York State
Department of Labor containing unemployment insurance benefit
payments and related information.

                           Overt Acts

           3.  In furtherance of the conspiracy and to effect
the illegal object thereof, the following overt acts, among
others, were committed in the Southern District of New York and
elsewhere:

               a.   On or about December 2, 2020, two co-
conspirators (“CC-1” and “CC-2”) possessed and safeguarded in a
guest room of a hotel in Yonkers, New York, hundreds of pieces
of mail sent by the New York State Department of Labor (the “NYS
DOL”) that had been stolen.

               b.   Between at least in or about July 2020 to at
least in or about October 2020, CC-1 traveled on multiple
occasions from locations in the Southern District of New York to
locations in Queens, New York and met with OSCAR ABREU, another
co-conspirator, to receive from ABREU the NYS DOL mail that he
and RAFAEL GRULLON and ALDO PALOMINO, JR., the defendants, stole
and to pay ABREU cash in exchange for the stolen mail.

               c.    On or about September 16, 2020, ABREU stole
a piece of mail sent by the NYS DOL that was expected for
delivery on or about that day to an address on his postal route
in Queens, New York.

               d.    On or about October 8, 2020, PALOMINO, JR.
stole a piece of mail sent by the NYS DOL that was expected for
delivery on or about that day to an address on his postal route
in Queens, New York.

          (Title 18, United States Code, Section 371.)




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                            COUNT TWO
             (Theft of Mail by Officer or Employee)

          4.   From at least in or about July 2020 up to and
including at least in or about November 2020, in the Southern
District of New York, and elsewhere, RAFAEL GRULLON and ALDO
PALOMINO, JR., the defendants, being Postal Service officers and
employees, did knowingly embezzle letters, postal cards,
packages, bags, and mail, and articles and things contained
therein entrusted to them and which came into their possession
intended to be conveyed by mail, and carried and delivered by
any carrier, messenger, agent, and other person employed in any
department of the Postal Service, and forwarded through and
delivered from any post office or station thereof established by
authority of the Postmaster General and of the Postal Service,
and stole, abstracted, and removed from such letters, packages,
bags, and mail, articles and things contained therein, to wit,
PALOMINO, JR., and GRULLON stole mail that was sent by the New
York State Department of Labor and forwarded through the Postal
Service Processing and Distribution Center on Ninth Avenue in
Manhattan, New York.

          (Title 18, United States Code, Sections 1709
                             and 2.)

                           COUNT THREE
                 (Conspiracy to Receive Bribes)

          5.   From at least in or about May 2020 up to and
including in or about December 2020, in the Southern District of
New York and elsewhere, RAFAEL GRULLON and ALDO PALOMINO, JR.,
the defendants, and others known and unknown, willfully and
knowingly, did combine, conspire, confederate, and agree
together and with each other to commit an offense against the
United States, to wit, receipt of bribes, in violation of Title
18, United States Code, Section 201(b)(2)(C).

          6.   It was a part and object of the conspiracy that
RAFAEL GRULLON and ALDO PALOMINO, JR., the defendants, being
public officials, and others known and unknown, directly and
indirectly did corruptly demand, seek, receive, accept, and
agree to receive and accept something of value personally, in
return for being induced to do an act and omit to do an act in
violation of GRULLON’s and PALOMINO, JR.’s official duties, to
wit, GRULLON and PALOMINO, JR. agreed to receive and did receive
monetary payments in return for stealing mail to which GRULLON
and PALOMINO, JR. had access by virtue of their positions as
letter carriers of the USPS, in violation of their official
duties as USPS letter carriers.

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                           Overt Acts

           7.  In furtherance of the conspiracy and to effect
the illegal object thereof, the following overt acts, among
others, were committed in the Southern District of New York and
elsewhere:

               a.   Between at least in or about July 2020 to at
least in or about October 2020, CC-1 traveled on multiple
occasions from locations in the Southern District of New York to
locations in Queens, New York and met with OSCAR ABREU, a co-
conspirator, to receive from ABREU mail that he and RAFAEL
GRULLON and ALDO PALOMINO, JR., the defendants, stole and to pay
ABREU in exchange for the stolen mail.

          The bases for my knowledge and for the foregoing
charges are, in part, as follows:

          8.   I am a Postal Inspector with the USPIS, and I
have been personally involved in the investigation of this
matter. This affidavit is based on, among other things, my
conversations with law enforcement officers and others, my
examination of reports and records prepared by law enforcement
officers and others, and my involvement in this investigation.
Because this affidavit is being submitted for the limited
purpose of establishing probable cause, it does not include all
the facts that I have learned during the course of my
investigation. Where the contents of documents and the actions,
statements, and conversations of others are reported herein,
they are reported in substance and in part, except where
otherwise indicated.

                        CC-1’s and CC-2’s
                December 3, 2020 Yonkers Arrests

          9.   Based on my communications with law enforcement
officers, my review of reports and records of the Yonkers Police
Department (“YPD”), and my own participation in this
investigation, I know that, on or about December 3, 2020, YPD
officers responded to a 911 call from the front-desk clerk (the
“Clerk”) of a hotel located on Executive Boulevard in Yonkers,
New York (the “Hotel”) regarding a collection of suspicious mail
found in one of the Hotel’s guest rooms. Based on my review of
a YPD report and statement of the Clerk taken by YPD, my review
of other law enforcement documents prepared in connection with
this investigation, and my communications with other law
enforcement officers, I know the following:



                                4
               a.   On or about December 2, 2020, around 10:30
p.m., Hotel staff retrieved from Room 135 a large quantity of
suspicious mail after receiving a call from a guest in Room 135
stating, in sum and substance, that some mail had been left in
Room 135 by the prior guests. The mail consisted of numerous
envelopes from the NYS DOL addressed to many different
individuals. The mail appeared to be pre-sorted into bundles
secured with rubber bands and other various stacks. Certain
envelopes were already open and found to contain what appeared
to be debit cards with pin numbers listed.

               b.   Officer-1, upon being shown by the Clerk the
mail, including one of the opened envelopes with a debit card
inside, felt several other unopened envelopes, and, based on
what he felt, believed those envelopes also contained debit
cards. A picture of the mail taken by the Clerk as found in
Room 135 is below:




               c.   The prior guests who had been staying in
Room 135 were originally supposed to check out that day but had
extended their stay at the Hotel. Room 135 had already been
booked for a new reservation starting that day, and so, the
prior guests in Room 135 were moved to Room 213.

               d.   Shortly after the call from Room 135, a
female guest from Room 335 (“Individual-1”) spoke to the Clerk
and explained, in sum and substance, that she was friends with
the guests in Room 213, that she was translating for them
because they do not speak English, and that they left some items
in Room 135 and needed to retrieve them. The Clerk explained to

                                5
Individual-1 that Room 135 was occupied by new guests and that
Individual-1’s friends would have to wait until morning.

               e.   At approximately 12:00 a.m. on or about
December 3, 2020, Individual-1 called the Clerk and insisted, in
sum and substance, that she be able to go to Room 135 and
retrieve the items that had been left by her friends in Room
213. The Clerk again explained, in sum and substance, that she
could not do so until the morning. After speaking with
Individual-1, the Clerk then called 911.

               f.   Upon responding to the Hotel, Officer-1 and
the other responding YPD officers received from Hotel staff a
visual description of the guests in Room 213. Officer-1 and
another officer proceeded to the second floor of the Hotel to
speak to the guests in Room 213. When they reached the second
floor, the officers saw two individuals –- a female, who was
later identified as CC-1, and a male, who was later identified
as CC-2 -- who matched the visual description given by Hotel
staff of the guests in Room 213, who were previously in Room
135, getting onto an elevator. The officers alerted the other
responding YPD officers on the Hotel premises.

               g.   After Officer-1 and the other officer
alerted the other responding YPD officers, YPD officers
canvassing the parking lot, surrounding grounds and office park
in the vicinity of the Hotel spotted two individuals who matched
the visual description of the guests in Room 213 given by Hotel
staff. The two individuals, later identified as CC-1 and CC-2,
were proceeding on foot walking away from the Hotel in the
vicinity of the main road of the surrounding office park when
they were spotted and stopped by YPD officers.

               h.   YPD officers brought a member of the Hotel
staff to the location who then identified CC-1 and CC-2 as the
guests from Room 213 who were previously in Room 135.

               i.   YPD officers then, at the direction of the
YPD sergeant at the scene (“Sergeant-1”), transported CC-1 and
CC-2 back to the Hotel lobby, where they were informed, in sum
and substance, that they were being detained pending YPD’s
ongoing investigation at the Hotel.

               j.   Another YPD officer (“Officer-2”) then
searched a laptop bag that CC-2 had in his possession at the
time (the “Laptop Bag”). Inside of the Laptop Bag, Officer-2
found, among other things, a laptop and a notepad with a blue
cover (the “Blue Notebook”) with a page visible that had
handwritten notes which appeared to reflect multiple

                                6
individuals’ personal identifying information -- such as names,
dates of birth, and social security numbers. Officer-2 flipped
through additional pages of the Blue Notepad that appeared
similar in nature. 1

          10. Based on my communications with law enforcement
officers, my review of YPD reports and records, and my own
participation in this investigation, I know that, at the request
of YPD, federal agents with the USPIS, including myself, and the
U.S. Department of Labor Office of Inspector General (“DOL-
OIG”), responded both to the Hotel and to a YPD precinct where
Cc-1 and CC-2 were taken. I further know that, after subsequent
questioning by the agents of CC-1 and CC-2, separately, and upon
both having been read their Miranda rights and initially
agreeing to wave those rights, law enforcement officers released
CC-2 and transferred CC-1 into the custody of Immigration and
Customs Enforcement (“ICE”) after determining that CC-1 was a
non-United States citizen and subject to a prior order of
removal issued by an Immigration Judge. 2

                       The NYS DOL Mail and
             Related Unemployment Insurance Benefits

          11. Based on my communications with other law
enforcement officers, my own participation in this
investigation, including my review of the mail recovered from
Room 135 of the Hotel, and my review of records and information
obtained from the NYS DOL, I know the following regarding the
contents of the mail found in Room 135 of the Hotel on or about
December 2, 2020:

               a.   Approximately 747 pieces of NYS DOL mail
were recovered from Room 135 that had been addressed to
claimants of COVID-19 pandemic-related unemployment insurance



1    At that point, CC-2 denied that the Blue Notebook was his.
2    Based on my communications with other law enforcement
officers, my review of court documents, and my own participation
in this investigation, I know that CC-1 was then prosecuted in
the United States District Court for the Southern District of
New York for illegal re-entry into the United States after
having been removed from the United States subsequent to a
conviction for the commission of an aggravated felony, in
violation of Title 8, United States Code, Sections 1326(a) and
(b)(2).


                                7
(“UI”) benefits 3 and tied to approximately 568 different UI claim
accounts administered by the NYS DOL (the “NY UI Claim
Accounts”).

               b.   Numerous pieces of mail contained UI benefit
debit cards issued to individual UI claimants at the direction
of NYS DOL.

               c.   None of the listed claimants for the 568 NY
UI Claim Accounts were identified as CC-1 or CC-2.

               d.   As of in or about December 2020, the
authorized aggregate payout of UI benefits across the
approximately 568 NY UI Claim Accounts was approximately $16.1
million, and the aggregate UI benefits paid out was
approximately $3.2 million.

               e.   Nearly all of the listed addresses for the
568 NY UI Claim Accounts and related NYS DOL mail pieces
recovered from Room 135 of the Hotel are in the Corona,
Flushing, and Elmhurst areas of Queens, New York concentrated
across a particular group of zip codes and streets.

          12. Based on my communications with other law
enforcement officers and my own participation in this
investigation, I know that a federal search warrant was obtained
and executed in connection with certain items belonging to CC-1
and CC-2 that were seized at the time of their Yonkers arrests,
including the Blue Notebook as well as a phone of CC-1’s and a
phone of CC-2’s.



3    Unemployment insurance is a state-federal program that
provides monetary benefits to eligible lawful workers. Although
state workforce agencies (“SWAs”) administer their respective UI
programs, they must do so in accordance with federal laws and
regulations. UI payments (benefits) are intended to provide
temporary financial assistance to lawful workers who are
unemployed through no fault of their own. The NYS DOL, like
other states, offers an online website (“the Website”) through
which applicants can, among other things, apply for COVID-19 UI
benefits and verify unemployment status, as outlined below. In
order to apply for COVID-19 benefits through the Website, an
applicant must complete and submit an online application (the
“Application”) that includes, among other things, the
applicant’s name, date of birth, social security number, and
address.


                                8
          13. Based on my communications with other law
enforcement officers, my own participation in this
investigation, and my review and examination of pages in the
Blue Notebook recovered from the Laptop Bag, I know the
following about the substance of the Blue Notebook:

               a.   The Blue Notebook has approximately 30 pages
of handwritten notes reflecting numerous individual names –-
none of whom are that of CC-1 or CC-2 –- alongside what appear
to be any or all of the following: dates of births, addresses,
social security numbers, and 16-digit numbers written in 4-digit
segments that appear to be bank card or financial account
numbers.

               b.   Multiple of the pages are labeled at the top
with the names of states, such as New York, Pennsylvania, and
Arizona, with some having dates written at the top as well,
ranging from in or about February 2020 to in or about July 2020.

               c.   On several pages there are lists of streets
and corresponding address numbers in Queens that are the same as
numerous of the addresses listed for the 568 NY UI Claim
Accounts and related pieces of NYS DOL mail. Examples of two
such notebook pages are shown below:




                                9
          14. Based on my review of the contents of CC-1’s
phone and CC-2’s phone, I know that on or about July 14 and July
27, 2020, CC-1 sent CC-2 images of additional notebook pages,
similar to those described above, listing streets and
corresponding address numbers in Queens that are the same as
numerous of the addresses listed for the 568 NY UI Claim
Accounts and related pieces of NYS DOL mail. Images of the
pages are shown below:




          15. Based on my communications with other law
enforcement officers and my own participation in this
investigation, I know that, after further investigation by the
USPIS, the DOL-OIG, and the Social Security Administration
Office of Inspector General (“SSA-OIG”), CC-1 and CC-2 were
ultimately federally arrested and later indicted on or about
February 23, 2022 on charges of conspiracy to commit wire fraud,
in violation of Title 18, United States Code, Section 371, theft
of government funds, in violation of Title 18, United States
Code, Section 641, and aggravated identity theft, in violation
of Title 18, United States Code, Sections 1028A(a)(1) and
1028A(b) for their participation in a scheme to fraudulently
obtain millions of dollars in COVID-19 UI benefits.




                               10
       GRULLON’s and PALOMINO, JR.’s Participation in the
         Scheme to Steal NYS DOL Mail and Receive Bribes

          16. Based on communications with other law
enforcement officers, including of the USPS Office of Inspector
General (“USPS-OIG”), and their analysis of the Queens addresses
for the approximately 747 pieces of NYS DOL mail recovered from
Room 135 of the Hotel and the corresponding Postal routes for
the USPS letter carriers who serve those addresses, I have
learned the following:

               a.   Nearly all of the approximately 747 pieces
of NYS DOL mail were destined for addresses on just three Postal
routes in Queens, as follows:

            •   Approximately 106 envelopes to route 4 in Corona,
                New York 11368 (“Route 4”);

            •   Approximately 384 envelopes to route 9 in Corona,
                New York 11368 (“Route 9”); and

            •   Approximately 250 envelopes to route 15 in
                Elmhurst, New York 11373 (“Route 15”).

               b.   From at least in or about September 2020 to
in or about March 2022, RAFAEL GRULLON, the defendant, was the
regular USPS letter carrier assigned to Route 4.

               c.   From at least in or about September 2020 to
in or about March 2022, OSCAR ABREU, a co-conspirator, was the
regular USPS letter carrier assigned to Route 9.

               d.   From at least in or about September 2020 to
in or about March 2022, ALDO PALOMINO, JR., the defendant, was
the regular USPS letter carrier assigned to Route 15.

          17. Based on my conversations with a USPIS postal
inspector who has expertise in the flow of mail in and around
New York State and the New York City metropolitan area, I have
learned that mail originating from Albany, New York and sent to
Queens, like the NYS DOL mail recovered here, is processed and
forwarded through the Postal Service Processing and Distribution
Center on Ninth Avenue in Manhattan, New York (the “Manhattan
P&DC”) before proceeding to Queens.

          18. For example, based on my review of USPS-OIG
reports and my conversations with a USPS-OIG special agent, I
have learned that USPS-OIG, through its review and analysis of
certain of the recovered NYS DOL mail pieces destined for

                                11
delivery on Routes 9 and 15 on which Automatic Facer Canceller
System (“AFCS”) postmarks are visible 4, was able to determine
expected delivery dates of such mail pieces. I have further
learned that, on or about all such expected delivery dates,
OSCAR ABREU was the assigned letter carrier for Route 9 working
that day, and ALDO PALOMINO, JR., the defendant, was the
assigned letter carrier for Route 15 that day.

          19. On or about April 5, 2022 and on or about May 25,
2022, I participated in two interviews of OSCAR ABREU, in which
ABREU admitted the following, in sum and substance:

               a.   In the Summer of 2020, ABREU began to
regularly put aside mail from his Postal route that was
addressed to specific names on lists that CC-1 sent him via
messages on WhatsApp once or twice a week.

               b.   CC-1 would then regularly contact ABREU by
phone and meet with him in Queens to collect the mail, count it,
and take it away. CC-1 would then, at the next meeting to
collect mail, pay ABREU for the previously collected mail.

               c.   Initially, CC-1 paid ABREU $200 per envelope
collected, but after ABREU told CC-1 that he could not do it
anymore, CC-1 increased the payment to $500 per envelope to
induce him to continue.

               d.   Although ABREU initially denied working with
other letter carriers, he admitted that, in or about August
2020, CC-1 requested that ABREU recruit additional letter
carriers to get access to more Postal routes. ABREU then
approached RAFAEL GRULLON and ALDO PALOMINO, JR., the
defendants, separately, and both agreed to put aside mail from
their Postal routes in exchange for money. CC-1 agreed to pay
$200 per envelope collected by GRULLON and PALOMINO, JR., $100
of which ABREU would keep.

               e.   ABREU gave CC-1 approximately 50 to 100
envelopes per week initially, but this number increased to
approximately 150 to 200 envelopes per week once GRULLON and
PALOMINO, JR. got involved. ABREU estimated that between at
least in or about August 2020 and in or about October 2020, he
gave CC-1 hundreds of letters that he, PALOMINO, JR. and GRULLON
had collected in exchange for monetary payments.



4    AFCS postmarks are placed on mail pieces as they are sorted
and processed for further distribution in the mail stream.

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