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Owner of Glen Cove ad business pleads guilty to multimillion-dollar mail fraud scheme, feds say

The owner of a Glen Cove advertising business pleaded guilty Tuesday to defrauding the U.S. Postal Service out of more than $2 million by failing to pay for the delivery of millions of coupon books, federal prosecutors said.

Matthew Rosencrans, 50, of Glen Cove, did not pay for the delivery of 11.6 million pieces of bulk mail between July 2010 and August 2013 through his business, Community Coupons, according to prosecutors with the U.S. attorney's office for the Eastern District of New York.

Rosencrans' service allowed businesses to advertise in coupon booklets and fliers that were mailed to residents in the metropolitan area, prosecutors said.

A permit allowed Rosencrans to ship the materials at a discounted rate.

Prosecutors said he had paid for 3.4 million mailings, but submitted 15 million at a cost of more than $2 million.

"A theft from the Postal Service is a theft from the American public," Philip R. Bartlett, New York's postal inspector in charge, said a statement.

Rosencrans pleaded guilty Tuesday in Central Islip before U.S. District Judge Joanna Seybert. He faces up to 20 years in prison, and restitution payments to the Postal Service of $2.1 million.

Rosencrans and his attorneys could not be reached Tuesday to comment.

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