California-based Mailing Firms to Pay $4.2 Million to Resolve False Claims Act Allegations for Underpayment of Postage
Filed under: legal cases, postal, postal news, press releases, usdoj, usps
WASHINGTON – California-based companies Quicksort Inc., Quicksort LA Inc. and Quicksort Sacramento Inc. have agreed to pay the United States $4.2 million to settle allegations that Quicksort violated the False Claims Act by falsely representing the level to which it had pre-sorted mailings in order to obtain discounted postage rates from the U.S. Postal Service, the Justice Department announced today.
The U.S. Postal Service offers lower postage rates to mailers who automate and sort their mail by zip code because these steps save the Postal Service time and money. Mailers use the services of businesses such as Quicksort that combine the mail of many customers and pre-sort it in order to qualify for the pre-sort discounts. After processing customers’ mail, these pre-sort businesses present the mail to the Postal Service for mailing.
The settlement resolves allegations that the Quicksort companies misrepresented the pre-sort level of mail they submitted to the U.S. Postal Service at various times in 2008, 2009 and 2010.
“Making false claims to obtain discounted postage rates is dishonest, and such conduct interferes with the Postal Service’s effort to swiftly and accurately deliver the mail,” said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. “We will hold businesses accountable for underpaying for postage and will ensure that taxpayer funds are protected from fraud and abuse.”
“The Postal Service enters into mailing agreements with entities such as QuickSort to help ensure the US mail is collected, prepared, and delivered as cost effectively and efficiently as possible,” said Benjamin B. Wagner, U.S. Attorney for the Eastern District of California. “When a pre-sort business overstates the level of presorting it has performed, the Postal Service not only pays for services not rendered, but then also has to incur the costs of sorting the mail to its proper ZIP Code. The False Claims Act provides a powerful remedy when this activity occurs.”
“The Postal Inspection Service investigates these types of cases to not only protect the Postal Service but also protect the mailing community from those who seek to gain an unfair competitive advantage,” stated Postal Inspector-in-Charge Adam P. Behnen.
The settlement was reached by the Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Eastern District of California. The U.S. Postal Inspection Service investigated the matter.
source: U.S. Justice Department
Third Company Owner Pleads Guilty To Bribing Postal Official In Exchange For Contracts
COLUMBUS – Ronald R. Bassak, and his construction company, Meccon, Inc. admitted in United States District Court today that he and his company paid a U.S. Postal Service contracting officer approximately $100,000 in bribes in order to secure contracts for his company. During the investigation, the contracting officer committed suicide at his Westerville home.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Keith L. Bennett, Special Agent in Charge of the Cincinnati Division of the Federal Bureau of Investigation (FBI); and Elizabeth A. Farcht, Special Agent in Charge, U.S. Postal Service, Office of Inspector General, Eastern Area Field Office, (USPS-OIG) announced the pleas entered before U.S. District Judge Michael H. Watson.
Bassak, 52, of Akron, pleaded guilty to one count of misprision of a felony, or withholding information on a crime. He entered a plea on behalf of his company to one count of bribery of a public official. Bassak faces a sentence of up to three years imprisonment, a fine of up to $250,000 and up to one year of supervised release. The company faces a maximum penalty of at least one and up to five years probation and a possible $500,000 fine.
According to a statement of facts read during the plea hearings, special agents of the U.S. Postal Service Office of Inspector General interviewed Bassak in June 2009. Bassak said Postal Service contracting officer Ashvin Shah had solicited bribes from him in return for awarding future Postal Service construction contracts to Meccon Inc. Bassak paid Shah approximately $100,000 over four years.
Bassak is the third company owner to plead guilty in connection with the scheme. Jeffrey G. Baker, of Columbia Station, owner of the Cleveland based Margus Company, pleaded guilty in January. He was sentenced to two years probation and fined $10,000. Michael Murray and his company, the Three R Construction Company of Cincinnati, pleaded guilty in April 2010. Sentencing for Murray and Three R is scheduled for September 3.
Shah committed suicide at his Westerville home in June 2009.
Stewart commended the cooperative investigation by FBI and Postal Service Inspector General special agents, and Assistant U.S. Attorney Dale E. Williams Jr., who is prosecuting the case.
Former Acting Postmaster Sentenced For Money Order Kiting Scheme
Filed under: postal, postal news, Postmasters, press releases, usdoj
Press Release from the U.S> Attorney for the District of Connecticut:
August 11, 2010
David B. Fein, United States Attorney for the District of Connecticut, announced that KEVIN RYAN, 54, of Avon, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to two years of probation for misappropriating postal funds.
According to court documents and statements made in court, between June 2008 and June 2009, RYAN was the Officer in Charge of the North Canton Post Office. While serving as the Office in Charge, RYAN imprinted and deposited into his personal bank account postal money orders without making the required corresponding payments to the U.S. Postal Service until days or weeks later. During this time, RYAN kited approximately 66 money orders. When interviewed by federal agents on June 10, 2009, RYAN turned over six money order vouchers that had been redeemed but not paid for.
The total amount of money RYAN failed to pay to the U.S. Postal Service was $2,040. Today, Judge Burns ordered that RYAN make full restitution.
RYAN pleaded guilty to the offense on May 13, 2010.
This matter was investigated by the United States Postal Service, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Paul H. McConnell.
Former Indiana Postal Clerk Indicted For Theft of Nearly $14,000
INDIANAPOLIS – Tamara R. Barnett, 39, Indianapolis, was charged late yesterday with misappropriation of postal funds, following an investigation by the U.S. Postal Service – Office of the Inspector General.
The indictment alleges that Barnett stole postal funds by manipulating the retail sales system in a manner that resulted in cash overages that she subsequently converted to her own use.
It also alleged that Barnett stole portions of the cash intended for daily bank deposits. The total value of the theft alleged is nearly $14,000.
According to Assistant U.S. Attorney A. Brant Cook, who is prosecuting the case for the government, Barnett faces a maximum of 10 years in prison and a $250,000 fine. An initial
hearing will be scheduled before a U.S. Magistrate Judge.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a
reasonable doubt.
Pennsylvania Postal Clerk Charged With Taking $5.00 Cash, Lottery Tickets
Acting United States Attorney Robert S. Cessar announced today, April 13, 2010, that Jason E. Svencer of Johnstown, Pennsylvania, has been indicted by a federal grand jury in Johnstown on a charge of theft of mail by a postal employee.
The one-count indictment named Svencer, age 37, as the sole defendant.
According to the indictment presented to the court, on February 4, 2010, Svencer, a United States Postal Service mail processing clerk, took two pieces of first-class mail (greeting cards) addressed to two different individuals containing $5.00 in currency and four Pennsylvania lottery scratch-off tickets.
Assistant United States Attorney John J. Valkovci, Jr., who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The United States Postal Service/Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Postal Employee Indicted For Cashing More Than $41,000 In Money Orders
Press Release from US Attorney’s Office for the District of Minnesota
A United States Postal Service (“USPS”) employee was indicted in federal court for allegedly stealing and cashing approximately 80 money orders totaling more than $41,000 for her personal use. The indictment, which was filed with the U.S. District Court earlier today, charges Linda Kay Johnson, age 60, of Lewisville, with one count of fraudulently issuing money orders and one count of false entries and reports of money.
The indictment alleges Johnson issued the money orders from August 9, 2008, through December 4, 2008. In addition, it alleges she deceived the USPS by making false entries in the office books to cover up the loss.
If convicted, Johnson faces a potential maximum penalty of 10 years in prison on the false entries count and five years on the fraudulently issuing money orders count. All sentences are determined by a federal district court judge. This case is the result of an investigation by the U.S. Postal Service-Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Erika R. Mozangue.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been
committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven
guilty at trial.