A contractor pleaded guilty to conspiring to pay kickbacks connected to U.S. Postal Service facilities repair contracts, the Justice Department announced October 27. Ilya Zagaryuk paid a co-conspirator more than $465,000 from May 2022 to February 2024, according to court documents described by the department. The co-conspirator, an employee of a prime contractor on USPS projects, directed additional work to Zagaryuk and his company. The department said the conspirators inflated estimates and invoices to include kickback funds unrelated to legitimate repair costs. Zagaryuk agreed to pay $465,347.75 in restitution, jointly and severally with co-defendants. He faces a maximum five-year prison term and a fine of up to $250,000; a judge will determine any sentence.

Why it matters

  • The plea concerns alleged manipulation of federal procurement and repair-invoice controls.
  • The agreed restitution is subject to joint and several liability with co-defendants.