Postal fraud whistleblower cases filed against newspapers and magazines

Metro North Newspapers Inc. and Mile High Newspapers in Colorado have settled a whistleblower case for knowingly submitting false information to the United States Postal Service (USPS) to obtain reduced mailing rates. Under postal regulations, certain publications are eligible for reduced mailing rates which are substantially less than first class mailing rates. However, to qualify for periodical rates, at least 50 percent of the publication’s distribution must be paid to subscribers. The complaint alleged that the majority of newspapers’ recipients were unpaid subscribers. The False Claims Act lawsuit allows private individuals with knowledge of fraud against the federal government to file lawsuits on the government’s behalf. The whistleblower was filed by a former Mile High employee and Colorado resident Tom Lucas. He alleged that the damages to the USPS was upwards of $2.8 million. ¬†Jeffrey Newman represents whistleblowers.