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Red Ventures ordered to pay huge fines for lying about revenue to USPS

Red Ventures will pay $2.75 million in fines to the U.S. Postal Service over allegations that one of its brands lied about revenue with USPS.

CHARLOTTE, N.C. — Indian Land-based Red Ventures will have to pay $2.75 million in fines to the U.S. Postal Service for allegations that one of its brands lied about its revenue. 

According to the Department of Justice, MYMOVE, which falls under the Red Ventures umbrella, had a contractual agreement with the Postal Service to share monthly gross revenue related to certain programs. Instead, the lawsuit alleges Red Ventures and the company MYMOVE improperly and secretly deducted some of its own costs before sharing revenue with USPS, a change that was favorable to MYMOVE's profits at the expense of money owed to the Postal Service. 

MYMOVE helps people forward their mail to their new address and connects them to deals from top brands in their area. 

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The settlement also resolves allegations that MYMOVE improperly and knowingly allocated labor costs to another contract that included profit-sharing, thus passing labor costs to USPS. 

"This settlement demonstrates that those who cheat the government will be held accountable," U.S. attorney Dena J. King said. "My office will continue to investigate and hold responsible those who seek to profit from defrauding federal agencies." 

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In response to the settlement, Red Ventures released the following statement:

"As always, our movers division handles relationships with our customers, partners and the U.S. government with the highest integrity. Red Ventures has chosen to reach a settlement agreement in this case so that we can resume focus of our time and resources on helping millions of people streamline and improve their moving experience.”

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