US Post Office Loses $150 Million in Counterfeit Stamps

Following on from last month’s Authentication & Brand News™ article on the mass counterfeiting of barcoded postage stamps in the UK, a woman from California, USA, has pleaded guilty to defrauding the United States Postal Service (USPS) out of more than $150 million in a counterfeit postage scam in Los Angeles.

Between 2019-2023, the woman, Chen, and her co-defendant Chuanhua ‘Hugh’ Hu, owned and operated a package shipping business in downtown Los Angeles, which included shipping packages via US mail for China-based logistics and e-commerce businesses.

To avoid the cost of postage, Hu began printing duplicate and counterfeit Netstamps – serialised barcoded stamps purchased online from third-party vendors and printed onto adhesive paper. Using these fake stamps, the couple was able to mail more than 34 million parcels, representing a $150 million loss to USPS.

Chen will face a statutory maximum sentence of five years in federal prison for conspiracy to defraud the USA, and another five years for the use of counterfeit postage.