A rebate can sometimes be deceptive. Several years ago, the Postal Service became the target of a fraud scheme involving a diesel fuel and gasoline provider. With a fleet as large as USPS, the impact was significant.

The fraud was revealed in a “qui tam” lawsuit, which alleged that company representatives were engaging in schemes to defraud USPS and other government agencies.

The allegations included withholding rebate amounts owed to USPS as part of a fuel purchase agreement and engaging in price gouging, potential price fixing, and other anticompetitive practices.

Special agents uncovered that the company inflated transportation costs when calculating rebates, thereby reducing the amounts owed. The rebate fraud alone cost USPS between $5.7 and $12.9 million annually, and the scheme allegedly ran since 2006 or 2007.

In December 2023, after a thorough investigation and legal proceedings, the company agreed to a $2 million settlement, including $1 million in restitution for USPS.