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Southern California woman defrauded over $150 million from U.S. Postal Service

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Southern California woman defrauded over $150 million from U.S. Postal Service

A San Gabriel Valley woman pleaded guilty to defrauding over $150 million from the U.S. Postal Service.

Lijuan “Angela” Chen, 51, of Walnut, carried out the scheme by using counterfeit postage to ship tens of millions of packages, according to the U.S. Attorney’s Office.

From November 2019 to May 2023, Chen and her accomplice, Chuanhua “Hugh” Hu, 51, owned and operated a package shipping business in the City of Industry. 

The company provided shipping services for China-based logistics businesses.

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To save money, Hu created fake postage stamps to ship packages by printing duplicate and counterfeit Netstamps, which are stamps purchased online from third-party vendors and printed onto adhesive paper.

In November 2019, authorities became aware of the counterfeit operation and Hu fled the country and moved to China where he continued making counterfeit postage, officials said.

Chen remained in the U.S. to oversee the warehouses that she and and Hu were using to ship their packages during the scheme.

In 2020, the pair began using the counterfeit labels to send mail through the United States Postal Service. 

They would receive parcels from vendors and apply fake shipping labels before arranging for the items to be transferred to USPS facilities. 

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“The shipping labels were fraudulent and frequently included, among other red flags, ‘intelligent barcode data’ recycled from previously mailed packages,” according to court documents. “Intelligent barcode data is used in some postage shipping labels to evidence the payment of required postage for the shipped item.”

From January 2020 to May 2023, Chen and Hu mailed over 34 million packages with counterfeit postage and shipping labels, officials said.

This scheme caused more than $150 million in losses to the USPS.

Chen pleaded guilty to one count of conspiracy to defraud the United States and one count of the use of counterfeit postage. She has been in federal custody since her arrest in May 2023.

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

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Hu remains a fugitive believed to be residing in China. He was charged with one count of conspiracy to defraud the U.S., three counts of passing and possessing counterfeit obligations of the U.S., and one count of forging and counterfeiting postage stamps.

A sentencing hearing for Chen is scheduled for Aug. 2. If convicted, she could face up to five years in federal prison for each count.

This case was investigated by the U.S. Postal Inspection Service and IRS Criminal Investigation teams.

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Los Angeles, Ca

Olvera Street burro at El Pueblo de Los Ángeles in danger of being evicted

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Olvera Street burro at El Pueblo de Los Ángeles in danger of being evicted

Perhaps the most famous donkey in all Southern California, the life-sized stuffed burro in Olvera Street’s El Pueblo de Los Ángeles, which countless Angelenos and tourists from around the world have taken their photos with, is in danger of being evicted.  

Located at the entrance to what’s considered the birthplace of L.A., La Carreta at Placita Olvera, the small business that owns the burro, was founded in the late 1960’s by Jesus “Don Chuy” Hernandez and his wife Trancito “Tancho” Hernandez and has remained in the family since.  

During that time, visitors to Placita Olvera could get their photographs taken with the family’s pet donkey named Cirila. Later, the life-sized stuffed burro took its place.

  • L.A.'s Olvera Street burro in danger of being evicted
  • L.A.'s Olvera Street burro in danger of being evicted

Richard Hernandez, who now operates La Carreta at Placita Olvera, said he only recently learned that he was facing eviction.  

“Last Friday afternoon, the management came and told me that I was supposed to leave the premises on the 16 of May,” he told KTLA. “I don’t think the city attorney was aware of what this little carreta, this little business symbolizes for the city, for the Angelenos. People from all over the world have visited this little stand and now they want to take it away.”  

Hernandez said he plans to contact L.A. City Council about the possibility of saving the business that has been in his family for generations and asked Angelenos who love the burro to do the same.  

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A petition to save La Carreta at Placita Olvera can be found here.

KTLA Photojournalist Phil Ige contributed to this report.

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Los Angeles, Ca

Overnight closures for the 2 Freeway, 5 Freeway connector ramps begin Monday

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Overnight closures for the 2 Freeway, 5 Freeway connector ramps begin Monday

More roadwork will impact two Los Angeles freeways this week.

The California Department of Transportation will begin work on the 2 Freeway and 5 Freeway connector ramps starting Monday evening.

Caltrans says the overnight closures will be in effect for three evenings this week.

Here is the roadwork schedule for the project:

Monday night, May 13: Northbound State Route 2 connector to northbound I-5 closed 7 p.m. to 6 a.m.

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Tuesday night, May 14: Northbound State Route 2 connector to northbound I-5 closed 7 p.m. to 6 a.m. & Southbound I-5 connector to Northbound State Route 2 closed 7 p.m. to 5 a.m.

Wednesday night, May 15: Southbound State Route 2 connector to southbound I-5 closed 11 p.m. to 5 a.m

Caltrans will close parts of the 2 Freeway, and 5 Freeway connector ramps this week. The overnight closures are for seismic retrofitting of the bridge/tunnel and will begin on May 13, 2024. (Caltrans)

Crews will be working on seismic retrofitting of the bridge and tunnel and replacing the metal beam guardrail.

The project is expected to be completed in either the winter of 2026 or 2027. Caltrans says the project’s total cost is an estimated $15.9 million.

Officials are asking drivers to plan for extra travel time while the closures are in effect.

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Los Angeles, Ca

NASCAR unlikely to return to Southern California in 2025: report

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NASCAR unlikely to return to Southern California in 2025: report

Southern California fans of the most popular professional auto-racing organization in the U.S. may have to wait another year before it returns to the Southland.

According to a report from The Athletic this week, NASCAR is unlikely to return to Southern California in the upcoming 2025 season as the status on the construction on the previous stock car mainstay in the region remains in question.

The Auto Club Speedway, located just outside of Fontana in unincorporated San Bernardino County, last hosted a NASCAR Cup Series race in February 2023, when Kyle Busch won the Pala Casino 400. After that race, construction commenced to turn the track from a two-mile raceway into a short track, though updates on the project have been radio silent in the last year.

Reporting from the Los Angeles Times in February, just before the start of the current Cup Series season, indicated that officials still planned on constructing the short track in the Inland Empire, but the lack of a firm timeline leaves the future of Southern California racing up in the air.

“I would say that we are still planning on building a short track in Fontana,” said Steve Phelps, NASCAR president, according to the Times. “What the timing of that is, I don’t know. This isn’t the best time to be building based on inflation, the cost of capital, etc. But our intention is to continue to be in the Southern California market.”

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That intention likely won’t come to fruition until 2026 at the earliest, according to The Athletic.

FILE – Cars race around the track as downtown Los Angeles is seen in the background during the Busch Light Clash NASCAR exhibition auto race at Los Angeles Memorial Coliseum Sunday, Feb. 5, 2023, in Los Angeles. NASCAR returns to Los Angeles Memorial Coliseum for a third consecutive year for the exhibition Clash and the immediate future of racing in Southern California is at stake. (AP Photo/Mark J. Terrill, File)

NASCAR had just one race in Southern California on the 2024 schedule: The Busch Light Clash at the Coliseum, which is a pre-season exhibition on a short track inside the Los Angeles Memorial Coliseum.

While successful, the event is unlikely to return to the coliseum in 2025 as the three-year contract has been completed and NASCAR is exploring options in other cities to host the annual event, The Athletic reported.

Reports indicated that NASCAR had interest in building a short track inside of Dodger Stadium, or even using the race course designed for the Long Beach Grand Prix, but sources told The Athletic that those options aren’t viable for 2025.

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