Ilya Zagaryuk admitted paying nearly $500,000 in kickbacks tied to U.S. Postal Service repair work, according to a plea agreement. The Oregon contractor pleaded guilty Tuesday in federal court to paying an accomplice who directed repair projects to his company.
Zagaryuk, 40, of Damascus, paid $465,347.75 from May 2022 to February 2024, the agreement said. The payments were connected to more than 475 postal repair projects. The U.S. Attorney’s filing says they helped secure work for UKA Construction, Zagaryuk’s Oregon firm.
Paid Nearly 500K Through Cash and Wire Transfers
The payments went in cash or through bank wire transfers to a California company that held prime contracts with the Postal Service. That company directed repair subcontracts to UKA Construction in Oregon, Idaho, Wyoming, Montana and Washington, according to the agreement.
Prosecutors said the companies deliberately inflated repair estimates to account for the kickbacks. One example involved damaged walls and trim at a Postal Service facility in Portland. Zagaryuk sent his accomplice a draft estimate of $29,788.
The California contractor replied by text, “Put it at 34K and change, 5K will be comms,” then wrote, “Wife wanted a new car,” and sent a photo of a Maserati. Zagaryuk told authorities that “5K” meant the contractor’s commission or kickback, according to the agreement.
The agreement also says the California contractor sometimes inflated repair estimates without Zagaryuk’s involvement. The account describes how the alleged arrangement affected project estimates and payments. The source report details the kickback plea agreement and its stated connection to postal repair work.
Ilya Zagaryuk Awaits Sentencing
Zagaryuk learned in February 2024 that an investigation had begun, the agreement said. He told authorities his accomplice instructed him to wipe his phone and hire a lawyer. Zagaryuk did not delete the text messages, according to the filing.
He has agreed to pay $465,347.75 in restitution to the Postal Service. He could face up to five years in prison at sentencing. Prosecutors have indicated they will recommend the low end of the sentencing guidelines if he cooperates with investigators.
Associate Attorney General Stanley E. Woodward Jr. said in a statement that collusion harming the Postal Service and taxpayers is illegal and will not be tolerated. Zagaryuk has been released from custody while awaiting sentencing, and a sentencing date has not yet been entered on his case docket.
The plea agreement is the central record in this case, while other criminal law disputes show how courts address separate questions about criminal procedure. Readers can explore coverage of unresolved criminal law splits, a separate guilty plea ruling, and a case about police stop powers.
