Cuong H. Nguyen, Postage Fraud Scheme, California 2021

Cuong H. Nguyen, Postage Fraud Scheme, California 2021

Cuong H. Nguyen, a San Diego-based online vendor, has pleaded guilty to engaging in a wide-ranging postage counterfeiting, forging, and tampering scheme that deprived the U.S. Postal Service (USPS) of approximately $5 million of postage due and owing over multiple years and more than 160,000 packages.

According to the plea agreement, Nguyen digitally altered, counterfeited, forged, and tampered with various "postage evidencing systems" – i.e., postage meters. He primarily used the postage evidencing system known as Click-N-Ship when sending packages of beverages and food products from his businesses in San Diego. The scheme involved misrepresenting information appearing on postage labels attached to packages, including misstating the weight, size, destination, and origin of the packages, to deceive the USPS into underpaying postage.

Nguyen admitted that he and others involved in the scheme delivered approximately 162,221 packages between 2015 and 2019, despite underpaying postage. The underpayment of postage to the USPS was approximately $5,127,712.88, resulting in net profits to Nguyen, his businesses, and others of $862,374.00.

Assistant U.S. Attorney Daniel C. Silva led the investigation, which involved Special Agents from the U.S. Postal Inspection Service, IRS Criminal Investigation, and the Financial Investigations and Border Crimes Task Force. "Those who defraud the Postal Service are effectively stealing from the U.S. Treasury and the nation’s taxpayers," said Acting U.S. Attorney Randy S. Grossman.

Nguyen is scheduled to be sentenced on July 12, 2021, at 9 a.m. As part of his agreement to plead guilty, Nguyen agreed to forfeit $862,374.00 to the United States, as profits, proceeds, and property obtained directly or indirectly, as the result of the postage fraud conspiracy.

Cuong H. Nguyen, whose businesses operated in San Diego, pleaded guilty in federal court to conspiring to engage in a wide-ranging postage counterfeiting, forging, and tampering scheme that deprived the U.S. Postal Service of approximately $5 million of postage due and owing.

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