ARIZONA NEWS

Arizona company pays $600K to settle false postal-fee claims

Jul 30, 2023, 6:30 AM

Post office box...

A U.S. Postal Service drop box (Getty Images).

(Getty Images)

PHOENIX — Plexus Worldwide, an Arizona-based company that directly markets health and wellness products, agreed to pay $600,000 to resolve allegations that the company violated the federal False Claims Act, according to a release from the U.S. Attorney’s Office.

The allegations centered on Plexus underpaying postage to the U.S. Postal Service. According to the release, Plexus provided mail for delivery with postage that was calculated with attributes not associated with the items mailed. The United States also alleged that Plexus mailed other items with re-used postage.

Plexus also admitted that systems and controls were lacking, resulting in duplicate postage and in payments that understated the postage due.

According to the allegations, the postage Plexus affixed to the mailed items represented that postage had been appropriately paid, when in fact, it had not, and the misrepresentations facilitated Plexus’ underpayment or non-payment of postage.

The investigation was conducted by the United States Postal Inspection Service and the case was handled by the Affirmative Civil Enforcement Unit of the United States Attorney’s Office, District of Arizona.

“It has always delivered mail through snow and rain and heat and ‘gloom of night’; during the pandemic it delivered free masks to protect our nation; and it increasingly connects our fellow citizens with access to the ballot box for local, state and federal elections.

“It is therefore incumbent on all businesses to pay their fair share to support this integral means of communication,” said U.S. Attorney for the District of Arizona, Gary M. Restaino.

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Arizona company pays $600K to settle false postal-fee claims