Daijiworld Media Network - Washington
Washington, Sep 28: A Pakistani national has been charged in a US federal court for allegedly operating a website that sold more than 5.1 million counterfeit postage labels, causing losses of over $126 million to the US Postal Service.
A federal grand jury in the Southern District of Florida indicted Faheem Akram, 33, of Khanewal, Pakistan, in connection with the alleged operation of LabelsBank.com.
According to prosecutors, the website sold counterfeit postage labels at fixed prices, typically around $2 each, irrespective of a parcel's weight, size or destination.
Court records cited by prosecutors said the website was not authorised to sell Postal Service products or services. Customers allegedly used the counterfeit labels to ship parcels at prices significantly lower than legitimate postage charges.
The investigation found that more than 5,200 people purchased over 5.1 million labels through the website. Prosecutors alleged that the resulting loss in postage revenue and shipping costs to the Postal Service exceeded $126 million.
The allegations have not been proven in court.
"The alleged scheme was simple but massive: sell counterfeit postage online at fixed, cut-rate prices, as little as $2 per label, regardless of a package's weight, size, or destination, enabling customers to avoid legitimate Postal Service charges," said US Attorney Jason A. Reding Quinones for the Southern District of Florida.
"The indictment alleges more than 5.1 million counterfeit labels and more than $126 million in losses. Through the work of the US Postal Inspection Service and our prosecutors, the website has been shut down, the domain seized, and federal charges brought against its alleged operator, a Pakistani national," he said.
The US Postal Service obtained a court order authorising the seizure and shutdown of LabelsBank.com in connection with the indictment.
The authorities did not disclose where Akram was when the indictment was returned or whether he had appeared before a US court.
Akram faces one count of conspiracy to defraud the United States and to make and sell counterfeit postage stamps. He has also been charged with five counts of making and selling counterfeit postage stamp labels and four counts of wire fraud.
If convicted, he could face a maximum sentence of five years in prison on the conspiracy and counterfeit postage charges, and up to 20 years for each wire fraud count.
"Our reach goes beyond our borders," said Bladismir Rojo, inspector in charge of the US Postal Inspection Service's Miami Division, which is investigating the case.
Rojo said the agency would continue pursuing individuals accused of using counterfeit postage to defraud the Postal Service.