A shocking case of fraud has been uncovered. It involves a woman from San Gabriel Valley who took over $150 million from the U.S. Postal Service (USPS). This scheme lasted for years and used fake stamps and millions of packages.
Lijuan “Angela” Chen and Chuanhua “Hugh” Hu were at the heart of this big fraud. They worked together for years. They used the USPS’s weak spots to their advantage.
Chen and Hu sent out more than 34 million packages with fake stamps. This caused the USPS to lose $150 million from January 2020 to May 2023. On one day, October 25, 2022, they sent 4,779 packages with these fake stamps.
The Mastermind: Lijuan “Angela” Chen’s Audacious Fraud
Lijuan “Angela” Chen and her partner, Chuanhua “Hugh” Hu, led a big mail fraud and identity theft scheme. They took over $150 million from the United States Postal Service (USPS). For years, they planned and carried out a big financial crime, embezzlement, and wire fraud plan. They used the USPS’s weak spots to their advantage.
Unraveling the Intricate Web of Deception
Chen ran a company in City of Industry that helped China-based businesses ship packages using USPS. With Hu’s help, they sent over 34 million packages with fake postage labels from January 2020 to May 2023. This stole millions from the postal inspector and USPS.
Exploiting Vulnerabilities: The Art of Evading Detection
Hu was an expert in making fraudulent schemes and fake postage stamps. When the feds started investigating, Hu went to China in November 2019. He kept making fake postage labels from there using a computer program.
Chen and Hu’s mail theft plan was very complex. But their bold actions have been caught. Now, the authorities are figuring out how big their fraudulent schemes were.
| Statistic | Value |
|---|---|
| Amount Defrauded from USPS | $150 million |
| Parcels Mailed with Counterfeit Postage | Over 34 million |
| Time Period of Fraud | January 2020 to May 2023 |
“Together, they contributed to the planning and implementation of the elaborate operation, highlighting the audacity and cunning of the individuals involved.”
The Accomplice: Chuanhua “Hugh” Hu’s Crucial Role
Chuanhua “Hugh” Hu, 51, was key in a big mail fraud scheme by Lijuan “Angela” Chen. He made counterfeit postage stamps. This helped the fraud, costing the USPS over $150 million.
Hu worked with Chen on the financial crime plan. They sent out 34 million parcels with fake stamps from January 2020 to May 2023. This shows how big their scheme was.
| Statistic | Value |
|---|---|
| Parcels mailed with counterfeit postage | 34 million |
| Counterfeit postage usage timeframe | January 2020 to May 2023 |
| Losses to the USPS | Over $150 million |
Hu was key in the mail theft and fraudulent schemes. He made counterfeit postage stamps to help Chen. Their work shows how big their impact was on the USPS.
The authorities are still looking into Hu’s part in the mail fraud scheme. They aim to make him face the law for his actions.
woman defrauded postal service: Counterfeit Postage and Recycled Barcodes
Lijuan “Angela” Chen and her partner, Chuanhua “Hugh” Hu, pulled off a huge scam over three years. They took more than $150 million from the United States Postal Service (USPS). They used fake stamps and old barcodes on over 34 million packages from January 2020 to May 2023.
Dissecting the Fraudulent Shipping Operations
Chen and Hu worked hard on their scam. They got packages from China, put on fake labels, and sent them all over the country. The labels were fake and used old “intelligent barcode data” to trick the USPS.
This mail fraud, identity theft, and financial crime cost the USPS $150 million. Chen has admitted to her part in it. She will face up to five years in jail for each charge at a hearing on August 2.
| Statistic | Value |
|---|---|
| Total Packages Mailed with Counterfeit Postage | Over 34 million |
| Estimated Loss to the U.S. Postal Service | $150 million |
| Duration of the Fraudulent Scheme | January 2020 to May 2023 (over 3 years) |
The investigation is ongoing. Authorities are working hard to find out more about this big scam. They want to make sure everyone involved is held accountable.
The Great Escape: Hu’s Flight to China
Chuanhua “Hugh” Hu tried to escape the law by going to China in November 2019. He knew the cops were after him for mail fraud, identity theft, and financial crime. Despite this, he found new ways to keep up his embezzlement and wire fraud schemes. He even made a computer program to make fake counterfeit postage labels.
Hu’s move to China showed how hard it is for postal inspectors and cops to catch financial criminals who use mail theft and fraudulent schemes. His actions showed the big challenge of catching white-collar criminals. Authorities worked hard to stop his tricks.
| Statistic | Value |
|---|---|
| Foreign-born individuals with doctorate degrees in science and engineering in the US in 2015 | 45% of those working in tech fields |
| Individuals in science and tech fields born in China in 2015 | Over 101,000 |
| Chinese students enrolled in STEM majors in the United States during the 2018-2019 academic year | More than 143,000 |
| China-related counter-intelligence cases opened by the FBI since 2018 | Approximately every 10 hours |
Hu’s case showed the big challenges in fighting white-collar criminals who use tech and global connections to hide. His story highlights the need for better work between countries to stop financial crimes. It also shows how important it is to watch out for these crimes.
The Legitimate Front: Disguising Illicit Activities
Chen and Hu hid their mail fraud, identity theft, and financial crime behind a postal package shipping business. This legitimate front helped them hide their wrongdoings. They could then commit embezzlement and wire fraud easily.
Concealing the Fraudulent Scheme
They pretended to run a real business. Chen and Hu made fake postage stamps. Hu’s skills let them put these stamps on millions of packages. This way, they avoided paying postage and made more money.
“Anonymity in transactions and funds transfers is the main risk that facilitates money laundering.”
Using a legitimate front helped Chen and Hu hide their illegal acts. They used the postal system’s weak spots to carry out their fraud. This shows we need to be more careful to stop such fraud and identity theft.
Red Flags and Suspicions: Tracing the Counterfeit Labels
Lijuan “Angela” Chen and Chuanhua “Hugh” Hu tried to hide their fake labels. But, they made some big mistakes. They used “intelligent barcode data” from old packages. This trick raised flags and helped catch their mail fraud and identity theft scheme.
Scammers use the USPS to commit financial crimes like embezzlement and wire fraud. They send fake texts from USPS, offering money to look real. These texts have links that can download malware or ask for money.
They also make fake websites to sell products that they don’t plan to send. This is called “brushing” and is illegal in the U.S. It helps them look good by posting fake reviews. They use cheap items and fake addresses to avoid getting caught.
| Scam Tactic | Description | Impact |
|---|---|---|
| Phishing Texts | Scammers send texts pretending to be from USPS, often using personal 10-digit numbers | Leads to phishing websites, malware downloads, or requests for payments |
| Fake Websites | Scammers create e-commerce stores with heavily discounted items and non-traceable tracking numbers | Deceives customers by not shipping ordered products |
| Brushing Scams | Scammers send unsolicited merchandise to inflate product ratings and sales numbers | Illegal practice that compromises personal information and financial stability |
To avoid mail fraud and identity theft, be careful with unsolicited messages and links. Watch your credit reports for strange activity. Being alert can help you stay safe from these scams.
Facing the Consequences: Chen’s Guilty Plea
Lijuan “Angela” Chen pleaded guilty to her part in a big mail fraud, identity theft, and financial crime scheme. She admitted to her role, showing how serious the charges were against her. She was involved in a big fraud that hurt the United States Postal Service (USPS) a lot.
Potential Penalties and Sentencing Implications
Chen will face up to five years in federal prison for each count at her sentencing on August 2. This shows how serious the charges are against her. It also warns of the dangers of fraud against government agencies and the public.
The U.S. Justice Department says fraud through mail or wire is common in the U.S. Getting caught with federal mail or wire fraud can mean up to 20 years in prison. People charged could face trials in both federal and state courts.
Mail or wire fraud can lead to up to 20 years in prison, fines up to $250,000 (or $500,000 for organizations), or both. If the fraud is related to a disaster or a bank, the punishment can be even harsher. It could mean 40 years in prison and a fine of up to $1,000,000.
The Fugitive: Hu’s Whereabouts and Charges
Chuanhua “Hugh” Hu is wanted for his part in a big mail fraud scheme. He worked with Lijuan “Angela” Chen. Hu faces charges for conspiracy, passing fake money, and making fake stamps. He is hiding in China, making it hard to catch him.
The mail fraud, identity theft, and financial crime Hu is accused of have caused a lot of harm. Postal inspectors are working hard to find him and stop his fraudulent schemes. But, they don’t know where he is.
It’s hard for police to catch people who run away to other countries to avoid being caught. Even though the U.S. doesn’t give visas to people with criminal charges, some corrupt folks sneak in. They hide their money using trusts and LLCs.
| Charges Against Chuanhua “Hugh” Hu | Status |
|---|---|
| Conspiracy | Pending |
| Passing Counterfeit Obligations | Pending |
| Forging Postage Stamps | Pending |
The search for Hu shows we need better work with other countries and better security to stop mail theft and financial crimes. Finding justice in this case is hard. It shows how complex and tough it is to fight fraudulent schemes worldwide.
Investigative Prowess: Unraveling the Elaborate Fraud
The investigation into this complex mail fraud and identity theft scheme was very detailed. Teams from the U.S. Postal Inspection Service and IRS Criminal Investigation worked hard. They found a lot of financial crime, embezzlement, and wire fraud.
The postal inspectors and IRS agents used many methods to solve the case. They looked at financial records, shipping logs, and digital evidence. This helped them find out how the defendants stole money and committed fraud.
| Investigative Techniques | Key Findings |
|---|---|
| Forensic Accounting | Identified extensive financial irregularities and fraudulent transactions |
| Data Analysis | Uncovered patterns and connections within the complex criminal network |
| Digital Evidence Examination | Traced the flow of illicit funds and the digital footprint of the scheme |
The work of the postal inspectors and IRS agents shows how important it is to fight financial crimes. They keep the postal system safe and honest.
Lessons Learned: Tightening Security and International Cooperation
The case of Lijuan “Angela” Chen and Chuanhua “Hugh” Hu shows how big the problem of mail fraud, identity theft, and financial crime is. Chen has pleaded guilty and waits for her sentence. But Hu is still on the run, showing we need better security and more cooperation to stop these crimes.
This case shows how easy it is for criminals to steal mail and embezzle money. We need to make the postal system safer and update its tracking. Working together with other countries is also key to catching criminals like Hu and stopping more crimes.
The story of Chen and Hu tells us we must protect the postal system better. It’s a key part of our country’s infrastructure. By making security stronger and working together with the world, we can keep our citizens safe from financial crimes. This will also help us keep trust in the postal service.