Bulk Mailing Service To Pay $500,000 To Resolve Claims For Underpaid Postage

Oklahoma City, Oklahoma -- Bokchito Mail Center, S&T Management, Inc., The Cleaning Authority, Inc. and The Cleaning Authority, LLC (collectively "Bokchito Mail Center and its affiliates"), have agreed to pay $500,000 to the United States to settle allegations that it obtained postage discounts to which is was not entitled, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.

On behalf of the United States Postal Service, the United States Attorney’s Office reached a settlement of allegations that from September 14, 2006, through February 21, 2008, the Bokchito Mail Center and its affiliates submitted and paid for mailings at a postal rate to which they were not entitled. The Postal Service offers lower postal rates to mailers who comply with certain preparation and sorting requirements because these actions save the Postal Service time and money. The United States alleges that the Bokchito Mail Center and its affiliates claimed and paid the Enhanced Carrier Route postage rate when their mailings did not comply with the preparation and sorting requirements to qualify for that rate.

"Mailers who claim improper postage discounts not only gain an unfair advantage over their competitors, they also short-change the Postal Service of necessary funds to perform their work," said U.S. Attorney Sanford C. Coats. "We will continue to work with the Postal Service to ensure that the proper postage is paid."

"Postal Inspectors appreciate the strong stance U.S. Attorney Sanford Coats has taken against those who try to take advantage of the Postal Service through shortchanging postage," said Fort Worth Division Acting Inspector in Charge Mark Applewhaite. "Among the many roles Postal Inspectors have, one of the most important is to protect the U.S. Postal Service revenue, which ensures a level playing field for all customers, be they large mailers or someone mailing a single envelope."

In reaching this settlement, Bokchito Mail Center and its affiliates did not admit liability, and the government did not make any concession regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.

This case was investigated by the United States Postal Inspection Service and was prosecuted by Assistant United States Attorney Ronald R. Gallegos.