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LOS ANGELES (CNS) - A Los Angeles County woman pleaded not guilty Thursday to federal charges alleging the use of counterfeit postage to ship millions of parcels in a scheme that prosecutors say caused the U.S. Postal Service to lose over $150 million.
Lijuan "Angela" Chen, 50, of Walnut, is charged with conspiracy to defraud the United States, possession and use of counterfeit postage, and forging and counterfeiting postage stamps, according to the U.S. Attorney's Office.
A trial was scheduled for Aug. 15 in downtown Los Angeles.
"The evidence obtained in the investigation shows that Chen is operating a business which provides shipping and postage services to businesses, including e-commerce vendors operating out of China, that seek discounted USPS rates for mailing their products within the United States," according to papers filed in Los Angeles federal court.
"Multiple examinations conducted by USPS and USPIS staff have revealed that the vast majority of the postage used by Chen and her business to ship goods within the United States is counterfeit."
Chen's Industry-based business received parcels from the vendors and others, applied shipping labels showing postage purportedly paid, then arranged for the parcels to be transferred to USPS facilities to be shipped across the nation, federal prosecutors allege.
A USPS analyst estimates that between Nov. 1 and April 30, Chen and her employees shipped over 9 million mail parcels containing counterfeit postage, resulting in estimated revenue losses to the USPS of over $150 million, the indictment states.
Chen's shipping business was previously operated by her husband, who left for China two days after being interviewed by postal inspectors in November 2019, prosecutors say.