Mail House Exec Faces Up to 20 Years in Prison for Fraud

FREDERICK, MD—A vice president and part-owner of mail preparation specialist RMS Direct pleaded guilty to conspiracy to commit mail and wire fraud, the Gazette reported. Stephen Reid, 50, was accused of cheating clients out of more than $628,000, according to the U.S. Attorney's Office in Baltimore.

Reid faces a maximum sentence of 20 years in federal prison, a $250,000 fine and must forfeit $628,581, the Gazette said. He will be sentenced in July.

Another RMS Direct executive, President Chester Bigelow, was charged with conspiracy to commit mail and wire fraud.

RMS had contracts to prepare large-volume, fundraising mailings for nonprofit clients. Beginning in 2005, Reid allegedly sent clients falsified statements that the materials had been mailed out, when in fact they had not been mailed.