A Federal grand jury in Wisconsin has returned a 25-count indictment against International Outsourcing Solutions, along with 12 individuals charging the group with with a conspiracy to defraud IOS's manufacturer customers.

IOS is the largest coupon clearinghouse for grocery store retailers and manufacturer coupons in the U.S. If you've clipped coupons from your Sunday paper, you know IOS. What you probably didn't know is that coupons are a billion dollar industry.

The Indictment charges that the defendants participated in a multi-million dollar fraud that victimized five Wisconsin companies as well as other companies located throughout the country," said United States Attorney Biskupic.

This IOS indictment alleges that between 1997 and 2006, nine of IOS employees and and two associates of coupon brokerage, Riya Coupon Services, participated in a scheme to submit fraudulent coupons to manufacturers for payment, a $25 million swindle.

Read more on the IOS indictment via the Muncie Free Press, which names all eleven of the indicted folks... See also the FBI press release, from which the MFP article is largely drawn. IOS has responded to the suit, here, on their website.

-- MDT

Labels: FBI, Fraud, International Outsourcing Solutions