Northern Air Cargo LLC, Agrees to Pay $4.7 Million for Allegedly Falsely Reporting Delivery of U.S. Mail Transported Internationally

The Justice Department announced today that Northern Air Cargo LLC, has agreed to pay $4.7 million to resolve its potential liability under the False Claims Act for falsely reporting information regarding the delivery of United States mail to foreign postal administrations or other intended recipients under contracts with the United States Postal Service (USPS).  Northern Air Cargo is a cargo airline headquartered in Anchorage, AK.

“Government contractors must abide by their contractual commitments to the United States,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “Those who knowingly misrepresent compliance with their contractual obligations will face appropriate consequences.” 

USPS contracted with Northern Air Cargo to take possession of receptacles of United States mail at six locations in the United States or at various Department of Defense and Department of State locations abroad, and then deliver that mail to numerous international and domestic destinations.  To obtain payment under the contracts, Northern Air Cargo was required to submit electronic scans of the mail receptacles to USPS that confirmed the time and delivery of the mail at the specified destinations.  The contracts specified penalties for mail that was delivered late or to the wrong location.  Today’s settlement resolves allegations that Northern Air Cargo submitted scans that falsely reported the time that possession of the mail was transferred. 

“The safeguarding and timely delivery of the U.S. Mail to both international and domestic venues is of critical importance to the U.S. Postal Service,” said Special Agent in Charge Scott Pierce, U.S. Postal Service Office of Inspector General.  “The Office of Inspector General supports the Postal Service by promptly investigating allegations of contractual malfeasance, including instances of delivery falsification.  Working closely with the Department of Justice’s Civil Division, our special agents worked diligently to ensure an appropriate resolution.”

This matter was handled by the Civil Division’s Commercial Litigation Branch, in coordination with the USPS Office of the Inspector General and the USPS Office of General Counsel.

The claims settled by this agreement are allegations only, and there has been no determination of liability.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.