Chinese-Backed Logistics Firms in U.S. Sued for Counterfeit USPS Label Scheme

Two Chinese-owned logistics companies operating out of New York and California have been barred from using the U.S. Postal Service (USPS) following allegations of a years-long counterfeit postage scheme, Sourcing Journal’s Kate Nishimura reported.

The companies reportedly received packages from Chinese clients and reshipped them using counterfeit labels, depriving USPS of millions in revenue. I Photo: DCL Logistics

Federal prosecutors filed a civil complaint recently in Brooklyn against YDH Express, Inc. and YDH Int’l Inc., along with their owner Yizhao “Harvey” Hou. The suit accuses them of conspiring to commit mail fraud by printing and using fake USPS labels to ship thousands of China-origin parcels within the U.S.

Officials say the companies received packages from Chinese clients and reshipped them using counterfeit labels, depriving USPS of millions in revenue.

A temporary restraining order was issued by Judge Natasha C. Merle a day after the suit was filed, preventing the firms from using USPS services. The government seeks injunctive relief and compensation for financial losses under the Anti-Fraud Injunction Act.

“We will not tolerate attempts by unscrupulous overseas businesses using fake postage to unlawfully deprive USPS of revenue,” said U.S. Attorney Joseph Nocella, Jr.