$8.4M Deal Reached on Underpaid Postage

Share this article:
Cushman & Wakefield Inc., Interior Systems Inc. and William Marcellino, vice president of Interior Systems, agreed Sept. 8 to pay the United States and the U.S. Postal Service $8.4 million to settle a civil action filed by the Justice Department, said Richard B. Roper, U.S. attorney for the Northern District of Texas.

The civil action alleged the defendants violated the False Claims Act by failing to pay the USPS for postage owed on mailings.

The suit claimed the defendants underpaid postage due in a mail presort business they operated in Dallas from 1997 through 2000. The presort business was run at various times by C&W and a joint venture between Interior Systems and Cushman & Wakefield of Michigan Inc., an affiliate of C&W, according to the suit.

The suit alleged that from at least 1998 to 2000, the presort business underpaid postage due on mail it presented for mailing by periodically withholding postage statements, which were relied upon by the USPS to determine the amount of mail submitted and the corresponding postage due.

Previously, the manager of the presort operation, Ralph W. Ebert, was prosecuted by the U.S. attorney's office for the Northern District of Texas for his role. He was convicted on two counts of mail fraud and sentenced in October 2000 to 66 months in jail.

The case was investigated by the U.S. Postal Inspection Service and prosecuted criminally and civilly by the U.S. attorney's office in Dallas and the Justice Department, Civil Division, with the assistance of the postal service's Southwest Law Office.

Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

B2B Marketers Can Now Self-Serve Ads on Facebook Exchange

B2B Marketers Can Now Self-Serve Ads on Facebook ...

Sitescout's new integration with FBX opens up access to any size marketer, minus campaign spend minimums, according to the RTB company.

Day Two at DMA2014

Day Two at DMA2014

It was awards day in San Diego, with Teradata's Lisa Arthur being named Marketer of the Year, and Google Japan being feted for its direct mail prowess.

Today's Forecast: Chilly With a 10 Percent Lift in Parka Sales

Today's Forecast: Chilly With a 10 Percent Lift ...

The Weather Company launches a website offering marketers free advice on how to take advantage of shifts in the weather.