Pakistani national indicted in US over alleged $126m postage fraud

Faheem Akram allegedly operated website that sold over 5.1m counterfeit postage labels, Department of Justice says

A federal grand jury in Florida has indicted a Pakistani national for allegedly operating a website that sold more than 5.1 million counterfeit United States postage labels, causing over $126m in losses to the US Postal Service (USPS).

The US Department of Justice said on Monday that Faheem Akram, 33, of Punjab's Khanewal district, operated LabelsBank.com, an online website that allegedly sold counterfeit US postage at a fixed rate — typically $2 per label — regardless of a package’s weight, size or destination.

LabelsBank.com was not authorised to sell USPS products and services, the department said.

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It added that the counterfeit labels allegedly allowed customers to ship packages at rates far below legitimate USPS prices, resulting in substantial lost revenue and shipping costs to the Postal Service.

“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,” US Attorney Jason A. Reding Quiñones for the Southern District of Florida said.

“The indictment alleges more than 5.1m counterfeit labels and more than $126m in losses,” he said, adding that the website had been shut down, its domain seized and federal charges brought against its alleged operator.

The department said the investigation found that more than 5,200 individuals used LabelsBank.com to purchase more than 5.1m counterfeit shipping labels, resulting in over $126m in alleged losses to USPS.

In conjunction with the indictment, USPS obtained a court order authorising the seizure and shutdown of the website, according to the department.

“Our reach goes beyond our borders,” Inspector in Charge Bladismir Rojo of the US Postal Inspection Service (USPIS) Miami Division said.

“Transnational criminal organisations defrauding the postal service and targeting US consumers by pushing phoney postage will be found and brought to justice,” he added.

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Akram was charged with one count of conspiracy to defraud the US and to make and sell counterfeit postage stamps, five counts of making and selling counterfeit postage stamp labels and four counts of wire fraud, the department said.

If convicted, Akram faces a maximum penalty of five years in prison on the conspiracy and counterfeit postage counts and 20 years in prison on each wire fraud count, according to the department.

The USPIS Miami Division is investigating the case.