California woman busted in counterfeit postage scheme that cost USPS over $60M

A California woman who ran a shipping business was arrested for allegedly mailing more than 9 million parcels using counterfeit postage — costing the US Postal Service $60 million in revenue.

The six-month scheme by Lijuan “Angela” Chen, 50, of Walnut, fell apart last month after a USPS investigator discovered she was using shipping labels that displayed false meter numbers which began with “07,” according to a court filing.

“I know that meter numbers beginning with the digits ’07’ were phased out of use in 2020,” the inspector, Mark White, said in the court documents.

The US Postal Inspection Service also received notice that “several million ‘Zero Postage Labels’” had been procured, which are blank postage labels that contain valid tracking IDs and no postage paid.

But once postage information was printed, it showed the parcel was paid for in 2023 though the meter number indicated that the label was created three years prior.

In addition, investigators saw the same truck that was turned away from a distribution center for trying to ship mail with counterfeit postage parked outside Chen’s house the following day, according to the court filing.

Chen’s Inland Empire business in Industry provided shipping and postage services to businesses, including e-commerce vendors operating out of China.

She is alleged to have shipped more than 9 million pieces of mail between from last November 1 to April 30.

Chen left the US to stay in China from December through May and allegedly operated the counterfeit postage scheme from overseas China, the court documents said.

She was arrested on May 25 and is expected to be arraigned.

“This arrest shows our concerted effort to eradicate counterfeit postage from the United States Postal Service is working.

Counterfeit postage defrauds the United States Postal Service, consumers and the American public,” the USPIS told The Post in an email statement.

Chen faces one count of conspiracy to defraud the United States, and one count of use or possession of counterfeit postage.

Each charge carries a maximum sentence of five years in prison.

According to the complaint filed in US District Court for the Central District of California on May 22, Chen’s husband, Chuanhua Hu, previously operated the business.

Hu, who also goes by “Hugh,” was also under investigation for counterfeit postage by the USPIS.

He left California and traveled to China just two days after being investigated in 2019, and has yet to return stateside, a press release from the US Attorney’s Office says.