Oregon Contractor Pleads Guilty in Postal Service Repair Kickback Scheme

An Oregon contractor has pleaded guilty to conspiring to pay more than $465,000 in kickbacks related to U.S. Postal Service facilities repair contracts, the Justice Department said on October 27, 2026.

According to the department, Ilya Zagaryuk, 40, of Damascus, Oregon, owned a company that contracted and subcontracted to repair dozens of Postal Service facilities in Oregon, Idaho, Wyoming, Montana and Washington. Court documents filed in the U.S. District Court for the Eastern District of California state that from May 2022 to February 2024, Zagaryuk paid a co-conspirator, an employee of a prime contractor on Postal Service projects, over $465,000 in exchange for directing additional work to his company. The department said the two inflated estimates and invoices to build in funds for the kickbacks that were not based on legitimate repair costs.

Zagaryuk pleaded guilty to conspiracy to commit an offense against the United States, specifically a conspiracy to pay kickbacks. He faces a maximum of five years in prison and a fine of up to $250,000, the department said. He agreed to pay $465,347.75 in restitution to the Postal Service, jointly and severally with co-defendants. A federal judge will determine any sentence.

The Postal Service Office of Inspector General and the FBI Sacramento Field Office are investigating the case, according to the department.

Source: U.S. Department of Justice.

Originally published by True News: https://truenews.bagleyenterprises.net/stories/523