Took Payoffs, Postal Service Official Says : Tried to Give Texas Firm $250 Million Modernization Pact

WASHINGTON â€”  The vice chairman of the U.S. Postal Service’s board of governors pleaded guilty today to trying to steer a postal contract worth $250 million to a Texas company in exchange for illegal payoffs.

Peter Voss, under an agreement with federal prosecutors, admitted in a three-count felony information filed in U.S. District Court that he had illegally received from $20,000 to $25,000 in payoffs.

He immediately resigned from the postal board.

Voss, a state co-chairman of President Reagan’s 1980 presidential campaign in Ohio who was appointed to the board by Reagan in 1982, also admitted that he had an agreement to receive as much as 0.25% of the value of the contract for modernization of postal equipment if the Texas company, Recognition Equipment Corp. of Dallas, was awarded the work.

Billed 1st-Class Fares

In addition, the 55-year-old Canton, Ohio, businessman pleaded guilty to fraudulently billing the postal service for first-class air fare when he in fact had flown coach class.

Federal prosecutors said in court that Voss had charged the government for first-class fare after flying by coach on 81 trips since 1982. The government said Voss charged the government more than $70,000 for the 81 trips, which actually cost $26,200.

Prosecutors said he will make restitution to the government for the air fares and the payoffs. In connection with the air fare matter, however, Voss was permitted by the government to admit to only one such instance, a trip last November.

He pleaded guilty to two counts of receiving illegal gratuities and one count of embezzlement of postal service property.

He faces up to seven years in prison and $21,000 in fines. He will be sentenced July 24 before U.S. District Judge George H. Revercomb.

Agreed to Cooperate

At a news conference after Voss’ court appearance, U.S. Atty. Joseph DiGenova said the federal investigation of contracting practices at the postal service is continuing and that Voss has agreed to cooperate with the government.

By pleading guilty to a felony information, Voss avoids indictment by a federal grand jury and an ensuing trial.

Voss acted illegally in connection with a massive modernization of machinery used by the postal service to sort mail, according to documents filed in court by federal prosecutors.

The contract for the modernization will be awarded later this year, said postal service spokesman David McLean.

Voss was appointed to the board of governors by Reagan in 1982. He was elected vice chairman in January.