Pakistani National Indicted in US Over $126m Counterfeit Postage Scheme
Pakistani National Indicted in US Over $126m Counterfeit Postage Scheme
MIAMI: Faheem Akram, a 33-year-old Pakistani national from Khanewal, Punjab, has been indicted by a federal grand jury in the Southern District of Florida in the Faheem Akram postage fraud case, which centres on an alleged online scheme that sold more than 5.1 million counterfeit US postage labels, causing losses of over $126 million to the United States Postal Service, the US Department of Justice announced on September 28.
Faheem Akram, 33, of Khanewal, Punjab, allegedly operated LabelsBank.com, a website that sold fake postage at a flat rate of about $2 per label, no matter how heavy or large the parcel was or where it was going. The site was not authorised to sell postal products, and the counterfeit labels let customers ship packages far below real USPS rates.
Investigators found that more than 5,200 people bought the fake labels through the site. In conjunction with the indictment, a US court ordered the seizure and shutdown of LabelsBank.com.
How the alleged scheme worked
The offer was simple: fixed, cut-rate postage. A customer could print a label from the site for a small flat fee instead of paying the actual USPS postage, which rises with weight, size and distance. The labels allegedly let parcels move through the US mail system while the Postal Service collected almost none of the revenue.
“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 Quiñones for the Southern District of Florida.
The investigation was run by the US Postal Inspection Service’s Miami division. “Our reach goes beyond our borders,” said Inspector in Charge Bladismir Rojo. “Transnational criminal organizations defrauding the Postal Service and targeting US consumers by pushing phony postage, will be found and brought to justice.”
What the Faheem Akram postage fraud indictment charges
Akram faces one count of conspiracy to defraud the United States and to make and sell counterfeit postage stamps, five counts of making and selling counterfeit postage stamp labels, and four counts of wire fraud.
If convicted, he faces up to five years in prison on the conspiracy and counterfeit postage counts, and up to 20 years on each wire fraud count. The indictment is only an allegation, and Akram is presumed innocent until proven guilty.
The Justice Department did not say where Akram was when the indictment was returned or whether he has appeared before a US court.
A wider counterfeit problem
The case is part of a broader American fight against counterfeit postage. Fraudsters peddle fake stamps on social media marketplaces, e-commerce sites and standalone websites, often at 20 to 50 per cent of face value, and much of it is produced outside the country, according to the Postal Inspection Service.
Who is Faheem Akram?
US court records identify him as a 33-year-old from Khanewal, Pakistan, accused of operating LabelsBank.com, a website that allegedly sold counterfeit US postage labels.
How did the Faheem Akram postage fraud case allegedly work?
The site sold fake USPS postage labels at a flat rate of about $2 each, regardless of weight, size or destination, letting customers avoid real postal charges.
How much did the scheme allegedly cost USPS?
Prosecutors allege more than $126 million in lost revenue and shipping costs, from over 5.1 million counterfeit labels bought by more than 5,200 people.
What happens next in the case?
The LabelsBank.com domain has been seized and the site shut down. Akram faces a federal trial in Florida, where the charges must be proven beyond a reasonable doubt.
