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Carroll County man federally indicted for alleged $2 million financial fraud against U.S. Postal Service

A federal grand jury indicted a Carroll County man Wednesday after he allegedly submitted $2 million worth of fraudulent invoice charges while his company performed repairs and maintenance at U.S. Postal Service facilities, the U.S. Attorney’s Office for Maryland announced Thursday.

Joseph Liberto, 45, of New Windsor, was indicted on 31 counts related to federal wire fraud and conspiracy.

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According to the Office of the U.S. Attorney’s Office for the District of Maryland, Liberto served as the president of Frederick-based Sierra Construction LLC. Between 2014 and 2018, the company contracted with EMCOR Facilities Services’ Customer Solutions Centers to provide repair services to Postal Service (USPS) facilities.

“EMCOR acted as the clearing house responsible for receiving service calls for needed maintenance and repair work on its customers’ facilities, including the USPS, and assigning such work to service providers, such as Liberto and Sierra,” the U.S. Attorney’s Office said in a news release.

Liberto allegedly schemed “to defraud EMCOR and USPS by concealing Sierra’s use of subcontractors to carry out maintenance work it was assigned to perform, making false statements, and providing false documents to EMCOR, in order to overcharge the USPS,” according to the release. Through this overbilling, the indictment alleges, Sierra obtained about $2 million.

If Liberto is found guilty, he would face maximum penalties of 20 years in federal prison for the conspiracy, and for each of the 30 counts of wire fraud. The actual sentence would likely be less than the maximum penalty, according to the release.

An initial appearance in U.S. District Court in Baltimore had not yet been scheduled as of 5 p.m. Thursday, the release states. No attorney for Liberto was listed in online court records Thursday.

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