The United States Attorney’s Office for the Eastern District of Missouri has reached an $8.9 million settlement with Fiserv Inc. and Fiserv Solutions LLC over allegations that the companies failed to comply with United States Postal Service (USPS) standards and improperly obtained postage discounts.
Fiserv, a Milwaukee-based global provider of printing and mailing services, including invoices, financial statements, health care documents, and credit cards, operates a facility in Hazlewood, Missouri. The case centered on claims that Fiserv did not follow the USPS Move Update standard, which is designed to minimize mail forwarding or returns by regularly updating addresses. Companies that meet this standard can receive postage discounts on presorted and bulk mail.
As part of the agreement, Fiserv will pay nearly $9 million to the United States. Of this amount, over $5 million will be restitution paid directly to the USPS.
The allegations were brought under the whistleblower provisions of the False Claims Act by Deborah Lynn Getchman, a former employee of Fiserv. These provisions allow private individuals to file lawsuits on behalf of the government and potentially share in any recovery. In this case, Getchman will receive more than $1.5 million from the settlement proceeds.
Tammy Hull, U.S. Postal Service Inspector General, stated: “The United States Postal Service provides discounts to mailers who meet the certain standards of reducing the volume of mail that requires being forwarding or returned. Any company falsely claiming these discounts should know that we will pursue this fraud and bring them to justice. This case highlights the important role whistleblowers play in our work. We thank this whistleblower for coming forward and reporting these fraudulent activities.”
U.S. Attorney Thomas C. Albus added: “We thank the whistleblower in this case and we encourage others who know of an individual or company defrauding the government to bring their concerns forward. This settlement is an example of our important civil enforcement efforts where we work with whistleblowers to protect government funds.”
The resolution was achieved through cooperation between the U.S. Attorney’s Office for the Eastern District of Missouri and the USPS Office of Inspector General Contract Fraud Investigation Division.
This announcement was made public after November 13 following a federal government shutdown.
