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Mail Scam May Have Cost Stewpot $100K

A misdirected-mail scam in November and December may have cost Stewpot Community Services upwards of $100,000 in donations.

A misdirected-mail scam in November and December may have cost Stewpot Community Services upwards of $100,000 in donations. Photo by Trip Burns.

Stewpot Community Services CEO Frank Spencer said Stewpot may have lost more than $100,000 in a mail-fraud scam.

Someone sent a change of address notice for Stewpot to the U.S. Postal Service in mid-November, redirecting the charity organization's mail to a vacant house in south Jackson from Nov. 27 to Dec. 15.

Stewpot workers first realized something was wrong in early to mid-December, when they noticed the organization's donations were down about $105,000 from the same period in 2011. A few days later, the Postal Service informed Stewpot about the change of address.

Spencer, an ordained minister, said Stewpot receives about 40 percent of its donated income in November and December.

"I'm clergy. I don't want to tell you what my initial reaction was," Spencer told the Jackson Free Press Jan. 25.

The perpetrator used the account and routing number information from checks sent to Stewpot to draft funds out of donors' accounts, Spencer said. About six donors had called Spencer and confirmed that someone had removed the funds from their accounts when the JFP spoke to him Friday morning.

"I was very concerned that we would (not) get enough money to run our services. That was my first concern," Spencer said. "My second concern was the donors that had sent the checks and whether they would be defrauded."

Stewpot, located at 1100 W. Capitol St., is a charitable organization that provides food, shelter and other services to homeless citizens. Spencer said Stewpot will try to keep all 16 of its ministries open in 2013, but it will have to scale back on services due to the drastic loss of funding.

The U.S. Postal Inspector's Office is investigating the case. The perpetrator could face identity theft, among other charges. Attempts to contact the inspector's office for comment before publication were unsuccessful.

Any Stewpot donors who sent mail in November or December, or any who recognize a discrepancy in their accounts, should contact Stewpot at 601-353-2759 or the U.S. Postal Inspector's Office at 601-351-7152 immediately.

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