A Monsey man has been arrested on charges of
defrauding the U.S. Postal Service of more than $118,000 by using duplicate
shipping labels to support his cellphone accessory business.
Yehuda Shechter, 39, was taken into custody Tuesday and
later released on a $75,000 bond.
Schechter, who allegedly carried out the fraud while working
on behalf of a website known as BvHcell.com, apparently exploited a loophole in
the Postal Service’s system, using his computer for years to print out
duplicate shipping labels and escape paying full postage rates.
The fraud, according to a criminal complaint filed Monday in
U.S. District Court in White Plains, began honestly. Schechter opened a postage
account with the Endicia website on Dec. 18, 2008, but didn’t produce the first
duplicate label until Aug. 5, 2009.
After that, however, the pace of the fraud escalated
quickly, the complaint says. For nearly three years Schechter allegedly went on
to produce duplicate labels for nearly 10,000 pieces of mail through the
website, costing the Postal Service around $38,907, according to the complaint.
In April 2012, Schechter closed his account with the company
and, a month later, opened another account with Stamps.com, where he allegedly
created duplicate shipping labels for around 25,000 pieces of mail, costing the
Postal Service around $80,000.
Postal inspectors staked out Schechter for a week in April
2012.
Later, authorities set up a sting, and an undercover agent
bought two cellphone chargers from Schechter’s company and found the shipping
labels — both with Spring Valley return addresses — carried unique codes that
had been used previously. BvHcell.com was still active Friday.
“I have nothing to say,” Schechter said Friday.
Schechter’s lawyer, Jason Ser, declined to comment.
Schechter faces up to five years in prison if convicted.
By Erik Shillng - Lohud
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