The Department of Justice has announced that delivery company UPS will pay almost $5.3 million to resolve an alleged case of postal fraud. The U.S. Postal Service for transport and international mail alleged UPS committed fraud by fabricating bar code scans to claim payments.
The U.S Postal Service employed UPS to collect mail from several destinations in the U.S and various foreign Defense and State departments. The mail was then delivered to numerous federal and postal service facilities.
A contract between the U.S. Postal Service and UPS decreed that the delivery company would be penalized for any mail delivered incorrectly (delivered late or to the wrong location).
On delivery of the mail containers UPS routinely scanned the barcodes, but the U.S Postal service claims the delivery company falsified scans to conceal the fact that some containers were delivered late and others were passed onto third parties for delivery.
With the barcodes scanned, UPS was able to claim payment in full rather than incur penalties. This has led to a storm of discontent, with Assistant Attorney General for the Civil Division at the Department of Justice Brian Boyton commenting “Companies doing business with the government must meet their contractual obligations,”
Boyton went on to say that “The Department of Justice will pursue those who knowingly fail to live up to their bargain and falsely bill the government for goods or services they did not provide.”
International Mail Investigation Nets U.S Government Over $70 million
The U.S Postal Service set about developing a program for international commercial air contracts, and true to their word the Department of Justice pursued several air carriers. To date, there have been five civil settlements, netting the U.S Government over $70 million:
- United Airlines $49 million
- American Airlines $22 million
- Northern Air Cargo $4.7 million
- British Airways / Iberian Airways $5.8 million
- UPS $5.3 million
A Freight Audit Could Net Your Business Money Back Too
The U.S. Government are steadfast in their approach, refusing to pay full price for a carrier service that did not meet the terms of the contract, and they have a valid point.
Perhaps it’s time to take a close-up look at your freight – are you paying for incorrect deliveries too? Find out by engaging the services of a reliable, reputable freight audit company, such as Betachon. It’s time to reduce small parcel costs, get a handle on your delivery fees, and claim back what you are owed.