Plexus settles mail fraud for $600,000
Plexus has settled allegations of mail fraud for $600,000.
As per a civil case brought by the DOJ, Plexus
presented mail to the United States Postal Service (USPS) for delivery with postage that was based upon and calculated with attributes not associated with the items mailed, which resulted in underpaid postage.
Plexus also grifted USPS by reusing postage items to send out product orders.
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.
A signed July 2023 complaint (signatures are dated July 19th to 28th), backdates Plexus’ mail fraud to 2013.
Beginning in June 2013, the United States Postal Inspection Service (USPIS) discovered Plexus was mailing packages with shortpaid postage and others with duplicate postage.
In June 2013 and again in March 2014 and July 2016, the USPIS sent Plexus certified letters regarding the fact that it mailed items with shortpaid postage. These letters also pointed out Plexus’ use of duplicate postage.
However, notwithstanding these notifications, Plexus’ use of shortpaid postage and duplicate postage continued.
From June 2013 through October 2016, the USPIS received approximately 125 notifications from post offices throughout the country pertaining to shortpaid postage and duplicate postage from Plexus.
For its part, Plexus blames its mail fraud on “errors caused by third-party information systems”.
Nevertheless, Plexus admits, acknowledges, and accepts responsibility for short paying postage and for submitting duplicate postage that resulted in a net deficit of postage due to the USPS.
Of the $600,000 Plexus has settled for, $232,776 constitutes restitution.
I don’t think we’re going to see any criminal charges from Plexus’ conduct but the settlement agreement does state;
Plexus waives and shall not assert any defenses it may have to any criminal prosecution or administrative action relating to the Covered Conduct.
If there’s any follow up action from the DOJ I’ll leave an update below.