Tennessee Man Charged with Mail Fraud in Counterfeit Postage Scheme

Federal prosecutors have charged Jason Matthew Smalling with federal mail fraud in connection with a scheme where he used over $200,000 in counterfeit postage during a two year period.  Smalling is expected to plead guilty in court next week.  Mail fraud carries a maximum sentence of 20 years in prison and a $250,000 fine.

According to court documents, Smalling operated a business from his Piney Flatts home called “Value Decals”.  His company created and sold vinyl decals behind the unlicensed logos of professional sports teams including those of the National Football League, Major League Baseball, the National Basketball Association, and the National Hockey League.

From August 2011 through June 2013, Smalling created fraudulent logos and counterfeit postage on his computer, received business orders through his business’ website, and shipped them via Priority mail using the United States Postal Service.  According to Smalling’s plea agreement, he sent 312 Priority Mail packages with fake postage from the Bluff City post office.  The mail fraud scheme defrauded the United States Postal Service out of between $200,000 and $400,000.  Federal agents have seized over $26,250 from Smalling’s accounts at Sun Trust bank and $600 in cash on the day he was arrested.

Value Decals’ website is active and still has dozens of generic logos for sale, but all professional sports related logos have been removed.