LOS ANGELES – In a devastating blow to the United States Postal Service, a San Gabriel Valley woman has pleaded guilty to using counterfeit postage to ship packages, causing over $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. 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.
Chen and Hu’s scheme involved shipping tens of millions of parcels containing counterfeit postage shipping labels, which caused more than $150 million in losses to USPS. The shipping labels were frequently marked with “intelligent barcode data” recycled from previously mailed packages, a clear indication of their fraudulent nature.
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 Postal Service and the Postal Inspection Service will continue to implement expanded measures to preserve the level of security Postal Service customers expect and deserve,” said Inspector in Charge Carroll Harris, Los Angeles Division of the Postal Inspection Service. “Engaging in counterfeit postage fraud causes monetary losses to customers and the Postal Service alike. Fraudsters beware, the Postal Inspection Service will continue to exhaust all its efforts to disrupt your scheme, find you, and bring you to justice.”
Chen is scheduled to be sentenced on April 22, 2024, and faces up to five years in prison and a $250,000 fine. The case was investigated by the United States Postal Inspection Service, IRS Criminal Investigation, and the Los Angeles Division of the Postal Inspection Service.
United States District Judge will preside over the sentencing hearing. This case serves as a stark reminder of the devastating consequences of counterfeit postage fraud and the importance of holding perpetrators accountable for their actions.
“The U.S. Postal Inspection Service will continue to work tirelessly to disrupt and dismantle schemes like this one, and we will bring those responsible to justice,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office.
Chen’s guilty plea is a significant victory for the U.S. Postal Service and its customers, and serves as a warning to those who would seek to exploit the system for personal gain.
The case number is CR 23-00443-CAS-PJW.
This article is based on information provided by the U.S. Department of Justice and is subject to change as the case progresses.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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