LOS ANGELES – In a brazen scheme that left the U.S. Postal Service (USPS) reeling, a San Gabriel Valley woman has pleaded guilty to using counterfeit postage to ship tens of millions of parcels, causing more than $150 million in losses.
Lijuan “Angela” Chen, 51, of Walnut, pleaded guilty to one count of conspiracy to defraud the United States and one count of use of counterfeit postage in a federal court. Chen has been in federal custody since her arrest in May 2023.
“This defendant participated in a fraud scheme that caused massive losses to our nation’s postal service,” said United States Attorney Martin Estrada. “My office will continue to focus on holding fraudsters accountable and bringing justice to victims everywhere.”
According to her plea agreement, from at least November 2019 to May 2023, Chen and her co-defendant, Chuanhua “Hugh” Hu, 51, owned and operated a package shipping business located in the City of Industry. This company provided shipping services, including the shipping of packages via U.S. Mail, for China-based logistics businesses.
To avoid the cost of postage, Hu began creating false and counterfeit postage to ship packages by printing duplicate and counterfeit Netstamps – stamps that may be purchased online from third-party vendors and printed onto adhesive paper.
Starting in 2020, Chen and Hu began affixing counterfeit postage to mail they presented to USPS for delivery. Chen and Hu received parcels from the China-based vendors and others, applied shipping labels showing postage purportedly paid and then arranged for the parcels to be transferred to USPS facilities to be shipped across the nation.
For example, on October 25, 2022, Chen and Hu caused to be transported to USPS a delivery of approximately 4,779 packages to be shipped via U.S. Mail. This delivery included multiple packages bearing counterfeit USPS Priority Mail postage meter stamps.
As part of her plea agreement, Chen has agreed to forfeit funds that law enforcement seized from her bank accounts, insurance policies, and real estate in Walnut, Chino, Chino Hills, South El Monte, Diamond Bar, and West Covina.
The U.S. Postal Inspection Service and the IRS will continue to work together to disrupt and dismantle similar schemes, bringing perpetrators to justice and protecting the public from financial losses.
Related Federal Cases
Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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