United Airlines has agreed to pay more than $ 49 million to settle criminal charges and civil claims in connection with postal service fraud for the transportation of international mail. This settlement relates to incidents that occurred between 2012 and 2015 when the operator charged for mail that he did not transport.
The bottom
According Department of Justiceand (DOJ) Office of Public Affairs, among the years mentioned above, United “got involved in a scheme to defraud the USPS (United States Postal Service”) by sending fake scanned delivery data to make it look like the airline and partner carriers associated companies were complying with ICAIR (International Commercial Air) requirements.
The DOJ documents state that, instead of providing accurate USPS delivery scans based on mailing, United has submitted automated delivery scans “based on aspirational delivery times.” These scans did not match the actual transportation of mail, as stipulated in the contracts.
Therefore, as there was no movement at the station, the Chicago-based carrier was not entitled to payment. However, it still guaranteed millions of dollars in payments from the USPS.
Penalties
As a result of these events, United entered into a non-charge (NPA) agreement with the Criminal Division’s Fraud Section. Under the agreement, she will pay just over $ 17.2 million in criminal penalties. Meanwhile, the carrier has entered into a False Claims Act agreement with the Civil Division’s Commercial Disputes Department, Fraud Section. Here, you need to pay just over $ 32.1 million
“United was trusted by the USA The post office fulfills a critical function of the government – the transportation of US mail abroad, ”said acting assistant attorney general Nicholas L. McQuaid of the Criminal Division of the Department of Justice, according to the DOJ public statement.
“Instead of performing this task transparently, United defrauded the United States postal service by providing falsified package delivery information over a period of years and accepting millions of dollars in payments to which the company was not entitled. Today’s resolution emphasizes that companies that defraud the government – no matter the context, contract or federal program – will be held responsible. “
Other agreements
In all, United has agreed to continue to cooperate with the Criminal Division’s Fraud Section. He will report any evidence or allegation of violations. The legacy carrier will also reinforce its compliance program. In addition, you will meet certain reporting requirements, which will lead you to submit annual reports to the Fraud Section.
Simple Flying contacted United to comment on the fines. An airline spokesman told Simple Flying the following:
“The US Postal Service is a valuable United customer and we are happy to have corrected these procedures and look forward to serving the Postal Service in the future.”
United lost more than $ 7 billion in 2020 amid the impact of the global health crisis. It is also trying to cut another $ 2 billion in costs by 2023. Despite the significant $ 49 million, the fee does not stand out compared to the considerably high numbers the operator is already facing.
United is not the first major US airline to face this fine for this type of activity in recent years. Notably, American Airlines was fined $ 22 million in 2019 due to false correspondence records.
What do you think about United Airlines agreeing to pay more than $ 49 million to resolve these civil charges and claims? What do you think of the overall result? Let us know what you think of the situation in the comments section.