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Apr 2, 2021 by |

Orange County Whistleblower Attorney: $32 Million Settlement In False Claims Act Case Alleging Fraud In Postal Service Contracts


Alleged Fraudulent Postal Service Contracts By Former Employees of Airline

Allegations of False Delivery Scans

Employees Hid Actual Data From Government

Federal government contracts are almost always subject to very specific requirements and regulations. The U.S. Postal Service (USPS) contracts out domestic and international delivery services and those government contracts also carry strict performance guidelines.  When a contractor knowingly violates those guidelines, that conduct may constitute a false claim against the government actionable under the federal False Claims Act.  See False Claims Act (FCA), 31 U.S.C. §§ 3729 et seq. Cases under the FCA may be brought by the government, but are most often brought by individuals bringing actions on behalf of the government because those individuals have what’s known as original information of the fraud.  The individual plaintiffs are referred to as whistleblowers or “relators.” Their cases (known as qui tam cases) are initiated by filing a complaint on behalf of the government, under seal, and providing a copy of the complaint and a statement regarding their evidence to the government for evaluation.  31 U.S.C. § 3730(b).  If you have credible information for a false claims whistleblower case on behalf of the federal government in Orange County or elsewhere in California, call us today at (415)441-8669 and we can help.

Allegations of Fraudulent Conduct Under Postal Delivery Contracts

In one recently settled case[1] a large airline agreed to pay over $32 million in settlement of FCA allegations that it engaged in a scheme to defraud USPS by submitting false delivery scan data to make it appear that it was complying with contract requirements regarding accurate data of transit and delivery under a postal service contracts, when in fact it allegedly was not. Instead of providing USPS accurate delivery scans based on the movement of the mail, defendant allegedly submitted automated delivery scans based on aspirational delivery times. These automated scans did not correspond to the actual movement of the mail, as mandated by the contracts. Because this scan data was not tethered to the actual delivery of mail to the foreign recipients, payment was inappropriate under the government contracts. Through this data automation scheme, the airline allegedly secured millions of dollars in payments from the USPS to which it was not entitled.  According to allegations in the FCA complaint, certain employees of the defendant airline worked to conceal the airline’s automation efforts from the USPS, as they knew that the data being transmitted was fabricated. These individuals allegedly knew that the transmission of false data violated the terms of the contracts. According to the government, the attempts to hide the automation practices included efforts to revise the falsified delivery times to make the automated scans appear less suspicious to USPS.

Blowing The Whistle On Government Fraud

If an employee, former employee, or other individual with information of this kind fraud, files a qui tam case under the FCA he or she may be eligible for a reward if the government ultimately recovers from the wrongdoer.  31 U.S.C. §3730(d).  If the relator/plaintiff is a current employee, the employee/relator is protected from employer retaliation for bringing a qui tam case. 31 U.S.C. § 3730(h). If you are fired because you brought any fraud to light, you can fight back under the law.  You may be entitled to sue your employer and seek double back pay (with interest), reinstatement, reasonable attorneys’ fees, and reimbursement for certain costs in connection with the litigation. 31 U.S.C. § 3730(h)(2). Our Orange County whistleblower attorneys can represent you in any action for retaliation as well as represent you in your underlying whistleblower application.  We know how to investigate and litigate retaliation cases with the aim of obtaining our clients all relief available under all governing laws.

Contact Us

Ingrid M. Evans and our other Orange County whistleblower attorneys can be reached at (415) 441-8669, or by email at <a href=””></a>.  In addition to whistleblower cases under the FCA and CFCA, Ingrid and our other whistleblower attorneys also handle bank fraud whistleblower cases under FIRREA/FIAFEA, commodity trading and securities fraud under the Commodities Futures Trading Commission Whistleblower Program and the Securities and Exchange Commission Whistleblower Program, and tax fraud under the Internal Revenue Service Whistleblower Program. 

[1] Evans Law Firm, Inc. was not involved in the case in any way.

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