Air Cargo Carriers has paid more than US$350,000 to settle charges it falsified delivery scans under a US Postal Service contract, reported New York's Freight Waves.

The Milwaukee-based turboprop operator manipulated barcode data to avoid late-delivery penalties on mail routes in the Caribbean. Investigators found the company submitted false scans between 2018 and 2021, making it appear contract terms were met.

Air Cargo Carriers operates 26 Shorts SD3-60 aircraft and holds a four-year contract worth up to $71 million through 2028. The firm admitted to incorrect reporting and agreed to pay $350,633, including $187,000 in restitution to the Postal Service.

The Office of Inspector General launched the probe after a whistleblower tip. Metadata showed scans were generated internally rather than by handheld devices, with identical two-hour gaps between load and delivery times. The case was referred to the Department of Justice.

Air Cargo Carriers did not respond to requests for comment. The company is not the first to face penalties for falsifying scan data. Sky Lease Cargo settled for $1 million in November, while UPS, United Airlines, American Airlines, Northern Air Cargo, British Airways and Iberia Airlines have all paid millions in similar cases.