Airline agrees to pay fine to avoid prosecution
United Airlines has agreed to pay $49.5 million in exchange for dropping criminal charges and dropping civil suits in the international mail contract fraud case.
The U.S. Justice Department said Friday. The agency specified that the airline “provided false delivery information to the U.S. Postal Service (USPS) for several years, accepting millions of dollars in payment for doing so.”
As part of the agreement, the Justice Department agreed not to pursue criminal charges against the airline.
According to U.S. authorities, United Airlines fired the employee responsible for creating the fraudulent scheme and hired outside legal and accounting consultants to verify its accounts and compliance with government contracts.
The airline will also submit annual reports to the U.S. Justice Department.
Airline officials welcomed the agreement, saying they had “corrected the procedures” that had been criticized and “hope to serve the Postal Service in the future.”
The Justice Department clarified that the fraud occurred between 2012 and 2015.
In 2019, $22.1 million agreed to pay the U.S. Department of Justice to American Airlines, which was found to have misreported mail shipments.