United States Files Civil Enforcement Action and Obtains Temporary Restraining Order to Stop Queens-Based Logistics Company and Others from Shipping Packages from China with Counterfeit Postage Labels

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Edward Gallashaw, Acting Inspector in Charge, United States Postal Inspection Service (USPIS) announced today that the United States has obtained a temporary restraining order barring two logistics companies, one based in Queens, New York, and the other in Los Angeles, California, and their owner from using the United States Postal Service (USPS) to ship packages containing counterfeit postage.

On May 15, 2025, the United States filed a civil complaint in federal court in Brooklyn against the two shipping logistics companies and the companies’ owner (collectively Defendants), alleging that Defendants have committed mail fraud and conspired to commit mail fraud for years by shipping thousands of parcels through USPS using counterfeit USPS postage labels. Defendants, YDH Express, Inc., YDH Int’l Inc., and their owner/operator Yizhao Hou, also known as Harvey Hou, receive these parcels from their customers, which are companies located in China.  The complaint seeks injunctive relief under the Anti-Fraud Injunction Act, as well as additional relief to remedy financial losses incurred by USPS.  The United States also sought a temporary restraining order immediately barring Defendants from using USPS to mail parcels pending further order of the Court.  On May 16, 2025, United States District Judge Natasha C. Merle entered a temporary restraining order against Defendants.

“The Postal Service provides essential services to Americans, and we will not tolerate attempts by unscrupulous overseas businesses using fake postage to unlawfully deprive USPS of revenue it is entitled to,” stated United States Attorney Nocella.  “My Office is working diligently with our partners at the United States Postal Inspection Service to stop this ongoing fraud against the Postal Service.”

Mr. Nocella expressed his appreciation to the United States Postal Inspection Service and Customs and Border Patrol (CBP) for their work on the case.

“Hou allegedly cared only about making a profit at the expense of the USPS.  The U.S. Postal Inspection Service, along with Homeland Security Investigations and U.S. Customs and Border Protection, have a shared commitment in identifying individuals like Yizhou Hou who allegedly facilitate and perpetuate the use of fraudulent or counterfeit postage,” stated USPIS Acting Inspector in Charge of the New York Division Gallashaw.  “Postal Inspectors will use all of our resources to put an end to the use of counterfeit postage and hold accountable all who seek to defraud the USPS.  We will fulfill our mission to strengthen the American public’s trust in the U.S. Mail.”

As alleged in the complaint, Defendants have conspired to ship thousands of parcels bearing counterfeit USPS labels, which they receive in bulk from their customers, sellers of goods located in China.  Defendants have allegedly deprived USPS of substantial revenue through their use of counterfeit postage labels.  The complaint alleges that Defendants have committed mail fraud and conspiracy to commit mail fraud, and violated the False Claims Act (FCA), as a result of their misconduct.  The FCA allows the government to seek treble damages and penalties against those who defraud the United States, including by knowingly failing to pay obligations to the government.  The complaint seeks injunctive relief, damages, and penalties.

As set forth in the May 16, 2025 temporary restraining order (TRO), the Court found that there is “probable cause to believe that defendants are still engaged in the ongoing commission of mail fraud, and are still engaged in the ongoing conspiracy to commit mail fraud,” and that USPS would suffer “irreparable harm” absent a TRO because it “would continue to be defrauded by defendants’ use of counterfeit or invalid postage labels, or both.”

You can report mail theft, identity theft, fraud, or other crimes involving the U.S. mail by calling the Postal Inspection Service’s national toll-free number: 877-876-2455 or at http://uspis.gov/report.

The government’s case is being handled by the Office’s Civil Division.  Assistant United States  Attorneys David A. Cooper and Logan J. Gowdicott are in charge of the case, with assistance from Paralegal Specialist Loan Nguyen.

E.D.N.Y. Docket No. 25-CV-2719 (NCM)