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International Outsources Services, the nation’s largest coupon processor, has been indicted in US District Court and accused to stealing $250 million over the past decade. The 25-count indictment – which names nine corporate officers, as well as two executives from another company, Riya Coupon Services – says that the defendants have been submitting fake coupons to manufacturers for payment, as well as misidentifying retailers that had submitted actual coupons for payment.

According to the Milwaukee Journal-Sentinel, “The indictment accuses International Outsourcing of committing fraud several ways, including by:

• “Submitting coupons that were never used by consumers but rather were cut in large quantities by chop crews.

• “Taking coupons from smaller stores - some of which were cut by crews - and mixing them in with those from bigger stores to avoid scrutiny from manufacturers.

• “Telling stores their legitimate coupons were rejected when they weren't and pocketing the cash from manufacturers.”

International Outsources released a statement on Friday saying it would “vigorously defend” itself against the charges. Three of the indicted executives already have been arraigned and plead not guilty.
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