If you suspect or know of contract fraud against the Postal Service, <\/em>report it<\/em><\/a> to the OIG hotline. Your tip could be eligible for the OIG\u2019s <\/em>Reward for Information Program<\/em><\/a>.<\/em><\/p>\n
USPS News Link 10\/22\/26 – A Maxton, NC, repair contractor has agreed to pay $1 million in a civil settlement for allegedly inflating the cost of repairs at several Postal Service facilities.<\/p>\n
Special agents from the Postal Service\u2019s Office of Inspector General, or OIG, were using a proprietary data analytics tool to check contracts for possible fraud when it flagged the company and its owner.<\/p>\n
Investigators found fake invoices with inflated work hours; travel miles billed as labor; forged or altered USPS employee signatures; inflated equipment costs; and a lack of disclosed subcontractors.<\/p>\n
The special agents subpoenaed the company owner. During their questioning, his story unraveled, and the evidence of alleged fraud mounted. The Postal Service terminated its contracts with the company the next day.<\/p>\n
The U.S. Attorney\u2019s Office for the Eastern District of North Carolina charged the owner under the False Claims Act, which allows the federal government to recover up to three times the alleged amount of money falsely obtained \u2014 plus penalties for each false claim.<\/p>\n
The owner denied the allegations but settled the case out of court by agreeing to pay $1 million to resolve the fraud claims.<\/p>\n
The OIG investigation prevented an additional $3.6 million in future fraudulent payments to the company.<\/p>\n
\u201cThe Postal Service OIG will continue to aggressively investigate companies that engage in activities designed to defraud the Postal Service\u2019s contracting process,\u201d said Kevin Cloninger, executive special agent in charge. \u201cThis settlement demonstrates that our special agents, along with the United States Attorney\u2019s Office, will pursue contractors that overcharge the government and enrich themselves at the expense of USPS customers.\u201d<\/p>\n
The OIG recently highlighted the case<\/a> on its website.<\/p>\n If you suspect or know of contract fraud against the Postal Service, <\/em>report it<\/em><\/a> to the OIG hotline. Your tip could be eligible for the OIG\u2019s <\/em>Reward for Information Program<\/em><\/a>.<\/em><\/p>\n
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