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.

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. 

“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.

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.