The Maryland Special Prosecutor charged Franklin with improper personal use of over $100,000 in campaign funds. Per his plea agreement, Franklin faces one year in incarceration and four years of probation.According to the charges filed in June, Franklin allegedly embezzled $124,450.10 from the Friends of Mel Franklin campaign account between 2020 and at least October 2023. He is accused of making electronic transfers or writing checks to his bank account.The charges also state that Franklin used the funds for personal loans, credit card debt, rent, subscriptions, and cosmetic procedures for himself and a close friend. Additionally, it is alleged that he used campaign funds for personal hotel stays and an international trip.The Office of the State Prosecutor also claims that Franklin submitted false campaign finance reports to the Maryland State Board of Elections to cover up the misused funds.Franklin resigned in June, and after his plea hearing in Anne Arundel Circuit Court, he and his lawyer declined to comment. Franklin is set to be officially sentenced in November.

A rebate can sometimes be deceptive. Several years ago, the Postal Service became the target of a fraud scheme involving a diesel fuel and gasoline provider. With a fleet as large as USPS, the impact was significant.The fraud was revealed in a “qui tam” lawsuit, which alleged that company representatives were engaging in schemes to defraud USPS and other government agencies.The allegations included withholding rebate amounts owed to USPS as part of a fuel purchase agreement and engaging in price gouging, potential price fixing, and other anticompetitive practices.Special agents uncovered that the company inflated transportation costs when calculating rebates, thereby reducing the amounts owed. The rebate fraud alone cost USPS between $5.7 and $12.9 million annually, and the scheme allegedly ran since 2006 or 2007.In December 2023, after a thorough investigation and legal proceedings, the company agreed to a $2 million settlement, including $1 million in restitution for USPS.