A Nebraska company will pay the United States $9.4 million to resolve allegations that it underpaid postage for mail processed at its facility in Berks County, according to the U.S. Department of Justice.
Pitney Bowes Presort Services claimed discounted postage rates to which it was not entitled, federal officials said in announcing the settlement Tuesday.
"Those who obtain government benefits are expected to comply with the terms of those benefits," said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department's civil division. "This settlement demonstrates that there will be consequences for those who do not live up to their obligations."
The settlement, officials said, resolves allegations that Pitney Bowes failed to comply with the "Move Update" standard, which requires that mail be updated with change-of-address information provided by the U.S. Postal Service.
The company was required to ensure that mail it submitted on behalf of its customers at discounted postage rates complied with Move Update by either updating addresses on the mail directly or having its customers perform the updates, officials said.
The USPS, in turn, offered lower postage rates to Pitney Bowes.
"When mailers don't adhere to Move Update standards, it negatively affects the entire mailing community," said Inspector in Charge David W. Bosch of the U.S. Postal Inspection Service's (USPIS) Philadelphia division. "The U.S. Postal Inspection Service will continue to investigate mailers who fail to comply with postal regulations."
Pitney Bowes Berks' facility is located on Route 61 in Muhlenberg Township. The Omaha-based company helps prepare mailings for large mailers by gathering, sorting and presenting the mail to the U.S. Postal Service.