The contractor was an OT7. California's laws are that if you print a mailer for someone that you need to charge sales tax. If you print a mailer for someone including the addresses of the recipients then you need to charge sales tax. However, if you print a mailer, address them, AND take it to the post office for mailing (plus pay for the mailing) then you don't need to charge sales tax. Our contractor was extremely anti-government. This was before the IRS settlement and so the COS was too. Bulk mailers drive around to the back of the post office, drop off the mail, and then head around to the front to pay for it. Our contractor was dropping off the PAC mail and then was bribing a postal service employee to mark that batch of mail as "paid for" and to route it into the postal service system. Thus the contractor was striking one of his blows against the government by having them do the mailing work without getting paid. It was regarded as a win-win cycle. It's not clear how long this bribery arrangement went on but at some point the postal service employee started taking the bribe but not doing the additional steps to have the mail brought into the postal system. Postal service employees would see pallet loads of mail in back but as they were not marked as "paid - okay to intake" they would get thrown out. Within PAC (and all orgs) the addresso group keeps the mailing list up to date. Addresso noticed that the number of incoming address unknowns (adunks) had dropped to nearly zero. Addresso also knows that if they mailed 10,000 copies of something that they would get a certain number of adunks. This started an investigation where they determined the postal service was blocking their outflow. They notified the postal service of this which started their own investigation. The postal service investigation identified both the contractor and the postal employee. A police plus postal inspector raid was conducted on the contractor's business. They discovered another his schemes to deliver blows against the government was that he had been printing fake social security cards for people. The contractor was sent off to prison and on the COS side was declared an SP.