Fake stamp scheme run by California woman cost US Postal Service $150 million, feds say

A woman running a California shipping company cost the U.S. Postal Service more than $150 million by creating her own fake stamps, federal officials say.

Lijuan “Angela” Chen, 51, of Walnut pleaded guilty to conspiracy to defraud the United States and use of counterfeit postage, the U.S. Attorney’s Office for the Central District of California said in an April 26 news release.

Chen owned and operated a package shipping company in the City of Industry from November 2019 to May 2023, prosecutors said.

The company provided shipping services for China-based logistics businesses, officials said.

Chen copied and faked Netstamps, which are “stamps that may be purchased online from third-party vendors and printed onto adhesive paper,” prosecutors said.

In November 2019, her business partner fled to China and developed more ways to counterfeit U.S. postage, officials said.

Chen and her partner, Chuanhua “Hugh” Hu, shipped more than 34 million parcels with fake postage, costing the U.S. Postal Service more than $150 million, prosecutors said.

She faces up to 10 years in prison. Chen is scheduled to be sentenced Aug. 2, officials said.

Attorney information for Chen and Hu was not provided.

Hu, who remains in China, faces charges of conspiracy to defraud the United States, passing and possessing counterfeit obligations of the United States, and forging and counterfeiting postage stamps, authorities said.

The City of Industry is about a 20-mile drive east from Los Angeles.

This story was originally published April 29, 2024 at 11:07 AM with the headline "Fake stamp scheme run by California woman cost US Postal Service $150 million, feds say."