AURORA COMPANY TO PAY NEARLY $2M
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.