Berryville businessman admits to counterfeit stamp scheme

A Berryville direct-mail marketing business that once spent more than $1 million on postage in six months suddenly saw its postal costs plummet to less than $100,000 in one year.

Federal authorities say they now know why.

Rusty Dycus, owner of the now-defunct Olde School Marketing, has agreed to plead guilty in federal court after authorities say he used nearly 400,000 counterfeit postage stamps in a scheme that caused more than $441,000 in losses to the U.S. Postal Service.

According to a plea agreement filed in U.S. District Court, Dycus is charged with making, using or possessing forged or counterfeit postage stamps in violation of federal law.

Postal records show that between Jan. 1, and June 30, 2023, Olde School Marketing spent more than $1 million on postage, the agreement says.

Beginning in July 2023 and continuing through July 31, 2024, that number dropped to less than $91,000, according to the plea agreement.

Postal inspectors began investigating in November 2023, collecting samples of outgoing mail prepared by Olde School Marketing. Those stamps were submitted to the USPS Laboratory, which confirmed they were counterfeit.

Witnesses told investigators that the purchase of counterfeit stamps was the only way the business was profitable and that Dycus had been buying large quantities of stamps from a Chinese company selling large quantities of counterfeit stamps in the United States, the plea agreement says.

On Aug. 19, 2024, postal inspectors executed a search warrant at Olde School Marketing.

According to the plea agreement, the inspectors seized approximately 393,436 counterfeit stamps from the property. The fair market value of those stamps was $287,208.28.

Authorities also found letters prepared for mailing that contained 230,293 additional stamps valued at $185,501.61.

According to court records, Dycus denied involvement or knowledge that the stamps were fraudulent and told investigators he had someone at a local post office inspect the stamps and was told they were acceptable. That employee denied having such a conversation, the plea agreement says.

Dycus, 52, has now agreed to waive indictment and plead guilty to a single count, according to the plea agreement, signed Jan. 28.

The charge carries a maximum sentence of five years in federal prison, a fine of up to $250,000, or both, along with up to three years of supervised release and a $100 special assessment. Dycus also agreed to pay full restitution of $441,228.53.

After his initial court appearance, Dycus was released on an unsecured $5,000 bond. Conditions of his release require Dycus to report to the U.S. Probation Office, continue employment, surrender any passport and comply with travel restrictions.

Sentencing will be scheduled at a later date in U.S. District Court.

Dycus and his attorney, Chris Flanagin, declined to comment.