Now We Know Why The U.S. Postal Service is Broke

By Terry Frieden CNN Justice Producer
Justice Department sues Armstrong over USPS funds
Government says it wants more than $100 million in damages
UPDATED 8:08 PM EDT Apr 23, 2013

WASHINGTON (CNN) —The Justice Department late Tuesday formally filed its case against Lance Armstrong and his company Tailwind Sports for millions of dollars that the U.S. Postal Service spent to sponsor the cycling team.

    “The USPS paid approximately $40 million to sponsor the USPS cycling team from 1998 to 2004,” the court document says.
The government said it was intervening to recover triple the amount of the sponsorship funds under the False Claims Act, which could bring a total of more than $100 million in damages.

The complaint filed in U.S. District Court for the District of Columbia charges that the use of prohibited drugs constitutes a breach of contract with the Postal Service.

The government had signaled it would in all likelihood file such an action. The complaint names Armstrong, team manager Johan Bruyneel and Tailwind Sports LLC as defendants. Under the law, the Justice Department faced a 60 day deadline to file its case, which runs out Tuesday night.

Read more: http://www.wyff4.com/news/national/Justice-Department-sues-Armstrong-over-USPS-funds/-/9324256/19867724/-/cch9de/-/index.html#ixzz2RLBbgND6

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s