It was a simple but massive fraud. A Pakistani man in Florida operating an unauthorized webiste to sell counterfeit US postage labels has been busted. 33-year-old Faheem Akram caused the US Postal Services a loss of more than $126 million. According to court records, Akram 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 authorized to sell USPS products and services. 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,” said US Attorney Jason Reding Quiñones 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.”Quiñones later announced on social media that US Postal Inspection Service was offering a reward of up to $100,000 for information leading to Akram’s arrest and conviction.“We shut down his website. Now we need your help finding him. Faheem Akram is charged with operating a counterfeit postage scheme that allegedly sold more than 5 million fake shipping labels and caused more than $126 million in losses to the U.S. Postal Service. The U.S. Postal Inspection Service is offering a reward of up to $100,000 for information leading to his arrest and conviction. If you know where he is, call Postal Inspectors at 1-877-876-2455 and say “Law Enforcement.” Do not attempt to apprehend him yourself,” the social media post said.The investigation revealed that over 5,200 individuals used LabelsBank.com to purchase more than 5.1 million counterfeit shipping labels, resulting in more than $126 million in alleged losses to USPS.Akram is charged with 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, 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.
