WASHINGTON – A website selling cheap shipping labels has now turned into a massive US fraud case, with prosecutors accusing a 33-year-old Pakistani national from Khanewal of running a scheme involving more than 5.1 million fake postage labels and over $126 million in alleged losses to the US Postal Service.
The 33-year-old from Khanewal allegedly ran Labels*Bank*com, a website that investigators say distributed millions of counterfeit shipping labels to customers in America. US prosecutors allege that the website facilitated the sale of more than 5.1 million fraudulent postage labels.
The labels allowed customers to send packages for exceptionally low prices without paying the postage normally determined by factors such as the parcel’s weight, dimensions and destination. Investigators said the website was not authorised by USPS to sell postage, but allegedly charged customers approximately $2 per label.
More than 5,200 customers are believed to have purchased the disputed labels, according to the investigation. The alleged scheme therefore enabled users to substantially reduce their shipping expenses while leaving the US Postal Service to absorb the difference, prosecutors said.
After the indictment, a federal court ordered the seizure and closure of the website. The web domain was subsequently taken into government custody, effectively shutting down the platform through which the alleged operation was conducted.
US Attorney Jason A. Reding Quiñonez said prosecutors believe the case involved a relatively straightforward method that was allegedly carried out on a significant scale. According to the indictment, the operation involved millions of counterfeit postage labels and generated losses of more than $126 million for USPS.
The case was investigated by the Miami Division of the US Postal Inspection Service (USPIS) and is being prosecuted by federal authorities. USPIS Miami Division official Bladimir Rojo said American investigators would continue pursuing people involved in cross-border criminal activity regardless of their location.
Authorities, however, have not disclosed whether the Pakistani accused is currently in the United States, Pakistan or in custody.
The indictment contains several charges against the accused, including conspiracy to defraud the United States, five counts involving the alleged production and sale of counterfeit postage labels, and four wire fraud counts.
A conviction could result in up to five years in prison for the conspiracy and counterfeit-postage-related charges. Each wire fraud charge carries a possible maximum sentence of 20 years in prison.
