A Pakistani magistrate ordered Faheem Akram held for five days as U.S. prosecutors pursue charges alleging his website sold counterfeit postage and left the U.S. Postal Service (USPS) with more than $126 million in losses.
The National Cyber Crime Investigation Agency (NCCIA) arrested Akram in Lahore on Tuesday, Oct. 20. A magistrate approved the five-day physical remand on Wednesday, Oct. 21, after investigators sought 14 days.
The U.S. Attorney’s Office for the Southern District of Florida says customers paid about $2 for each label, whatever the parcel’s size, weight or destination. Its account of the indictment says LabelsBank.com sold more than 5.1 million labels to more than 5,200 customers and identifies Akram as the site’s operator.
Prosecutors estimate USPS lost more than $126 million, counting revenue the agency says it missed and shipping costs. That figure represents the alleged harm to USPS, not reported earnings from the website. Prosecutors say the flat price let customers ship below legitimate USPS rates, leaving the postal service to bear the alleged shortfall and costs.
Pakistani investigators say the site operated from August 2023 through September 2026 and used 16 bank accounts, including accounts held by Akram and relatives. EconoTimes previously covered the arrest and bank-account inquiry.
The U.S. Department of Justice (DOJ) said the indictment lists one conspiracy count, five counts tied to making and selling counterfeit postage labels, and four wire-fraud counts. If convicted, Akram could face up to five years in prison on the conspiracy and counterfeit-label counts, and up to 20 years for each wire-fraud count. The DOJ said a court authorized the seizure and shutdown of LabelsBank.com. Akram is presumed innocent unless proven guilty.
USPS warned in February 2023 of a rise in counterfeit postage. It said mail items bearing fake postage could be treated as abandoned and disposed of, with consumers potentially left to seek recourse from the seller.
