AURORA COM­PANY TO PAY NEARLY $2M

The Denver Post - - BUSINESS - David Migoya, The Den­ver Post

An Aurora com­pany that pro­vided mail­ing and lo­gis­tic ser­vices to e-com­merce clients has agreed to pay $1.95 mil­lion to the fed­eral govern­ment to end a long-run­ning in­ves­ti­ga­tion into un­der­pay­ments it made to the postal ser­vice.

AtLast Hold­ings al­legedly did not pay the proper postage on mail­ings it han­dled in its Aurora fa­cil­ity over a two-year pe­riod, and its fa­cil­ity in Louisville, Ky., over a three-year pe­riod, ac­cord­ing to a set­tle­ment agree­ment the com­pany and and its par­ent, Newgis­tics, signed with the U.S. Depart­ment of Jus­tice last month. Newgis­tics al­legedly made sim­i­lar un­der­pay­ments, but only for about six months.

Fed­eral of­fi­cials an­nounced the agree­ment on Thurs­day fol­low­ing an in­ves­ti­ga­tion by the U.S. Postal Ser­vice. The six-page agree­ment does not in­di­cate how the in­ves­ti­ga­tion be­gan, and the com­pa­nies did not ad­mit any li­a­bil­ity.

Rep­re­sen­ta­tives for the com­pa­nies could not im­me­di­ately be reached for com­ment. Newgis­tics is based in Austin, Texas, and ac­quired AtLast in 2012.

In prais­ing postal in­spec­tors for their work, act­ing U.S. At­tor­ney Bob Troyer said: “Never a great idea to try to trick those guys.”

From April 2011 through March 2012, AtLast al­legedly un­der­paid the postage fees on mail­ings it han­dled for other com­pa­nies that do busi­ness on the In­ter­net. Newgis­tics, from March 2014 through Septem­ber 2014, al­legedly ap­plied bill­able weights of just three ounces to its pack­ages, the set­tle­ment agree­ment notes.

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