U.S. prosecutors allege that a counterfeit-label operation cost the U.S. Postal Service more than $126 million; Pakistani authorities arrested the accused operator, Faheem Akram, in Lahore on Oct. 20.
Prosecutors say Akram, 33, operated LabelsBank.com from Pakistan; they allege that more than 5,200 customers bought over 5.1 million counterfeit labels there. The site generally charged $2 per label, whatever a shipment’s dimensions, weight or destination, according to the U.S. Attorney’s Office for the Southern District of Florida.
Prosecutors estimate the Postal Service lost more than $126 million in revenue and shipping costs. That amount measures the alleged harm to the agency, not Akram’s alleged proceeds from label sales.
Pakistan’s National Cyber Crime Investigation Agency (NCCIA) said it detained Akram after a search that included raids across the country. Pakistani investigators date the website’s operation to August 2023 through September 2026.
NCCIA Lahore Zone Additional Director Atif Ameer said investigators identified 16 bank accounts allegedly connected to the operation, including accounts held by Akram and relatives. He said they are also examining whether other people were involved.
The U.S. Attorney’s Office announced Sept. 28 that a federal grand jury in the Southern District of Florida had indicted Akram. The indictment charges him with one conspiracy count tied to defrauding the United States and making and selling counterfeit postage stamps, five counterfeit-label counts and four wire fraud counts.
The U.S. Postal Service obtained a court order to seize the website’s domain, and postal inspectors say the site has been shut down. Akram is presumed innocent unless proven guilty. The NCCIA’s inquiry into possible accomplices is continuing.
