Men Accused In $1.7 Million Counterfeit Stamp Operation

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On June 30, an Alabama man pleaded guilty to conspiracy to commit money laundering in connection with the purchase and distribution of millions of counterfeit postage stamps. A Georgia man charged in the alleged scheme made his initial appearance in federal court July 22.

Kevin Douglas Padgett, 48, of Phenix City, Ala., and John Patrick Best, 55, of Hoschton, Ga., were indicted in April 2026. The alleged scheme generated at least $1.7 million in proceeds from the sale of 6,483,700 counterfeit U.S. Flag forever stamps, with an additional 544,596 stamps seized by authorities.

According to a press release from the U.S. Attorney's Office in the Middle District of Alabama, Best is also charged with conspiracy to commit mail and wire fraud, possession with intent to sell counterfeit postage stamps, concealment money laundering and spending money laundering.

The money laundering conspiracy charge carries a potential maximum sentence of 20 years in federal prison, where there is no parole, along with monetary penalties and restitution. Padgett's sentencing hearing is scheduled for October.

"The US Postal Service is committed to protecting consumers and the US Mail from fraudulent activity and has no tolerance for people who create, distribute or use counterfeit postage," Shameka Jackson, Inspector in Charge of the U.S. Postal Inspection Service Houston Division, said. "These practices undermine the inherent trust of the USPS brand, and postal inspectors will continue work with our law enforcement partners and federal prosecutors to disrupt these criminal schemes and bring those responsible to justice."

The April indictment and other court records allege that in January 2024 the two defendants used suppliers in China to purchase the counterfeit postage stamps listed as "Patriotic Series American Independence Day Doodle Stickers," according to the Department of Justice.

The DOJ alleges that the pair formed a shipping supply company and opened bank accounts in the company's name. Best allegedly used his position at a media company to advertise and sell the stamps through an online marketplace.

Padgett allegedly packaged and mailed the counterfeit stamps from several locations, including post offices in Smiths Station and Phenix City, Ala.

The pair are accused of using a series of transactions through multiple bank accounts to attempt to conceal the illicit funds.

"Although individuals may attempt to disguise illicit profits through intricate financial maneuvers, IRS Criminal Investigation special agents excel at unraveling complex money flows and revealing the hidden trail they leave behind," Demetrius Hardeman of the IRS Criminal Investigation Atlanta Field Office said.

Best is presumed innocent until proven guilty in a court of law.