California woman defrauded over $150 million from USPS: officials

SUGGESTED COVERAGE: Why USPS is stopping service in this Santa Monica neighborhood

USPS is stopping mail service temporarily in one Santa Monica neighborhood after multiple mail carriers were assaulted, according to officials.

LOS ANGELES - A Southern California woman pleaded guilty Friday to defrauding the United States Postal Service out of more than $150 million by using counterfeit stamps to ship tens of millions of packages, according to the U.S. Attorney's Office, Central District of California.

Lijuan "Angela" Chen, 51, of Walnut, owned and operated a package shipping business in Industry, along with fellow co-owner Chuanhua "Hugh" Hu, 51, officials said. This company provided shipping services including the shipping of packages via USPS for China-based logistics businesses.

To avoid paying for official postage, officials said as early as 2020, Hu began creating fake postage by printing duplicate and counterfeit Netstamps, which can be bought online and printed onto adhesive paper.

When he realized authorities were on to him, Hu fled to China, where he allegedly developed a computer program for fabricating counterfeit postage shipping labels. Chen remained in the U.S. and managed the shipping center's warehouses.

"This defendant participated in a fraud scheme that caused massive losses to our nation’s postal service," said United States Attorney Martin Estrada. "My office will continue to focus on holding fraudsters accountable and bringing justice to victims everywhere."

As part of her plea agreement, Chen has agreed to forfeit funds that law enforcement seized from her bank accounts, insurance policies, and real estate in Walnut, Chino, Chino Hills , South El Monte, Diamond Bar, and West Covina.

Chen's next hearing is scheduled for Aug. 2. She faces a maximum sentence of five years after pleading guilty to one count of conspiracy to defraud the U.S. and one count of use of counterfeit postage.

Hu is believed to be living as a fugitive in China. He faces several charges, including one count of conspiracy to defraud the U.S. and one count of forging and counterfeiting postage stamps.