Pakistani Man Convicted of Defrauding FedEx of Nearly $300,000
HOUSTON ‐ A 32-year-old Pakistani national who resided in the local area has pleaded guilty to six counts of mail fraud, announced U.S. Attorney Kenneth Magidson. Babar Butt resided in multiple locations in Houston and Spring and operated an electronics export business, routinely shipping items to Dubai, United Arab Emirates.
Beginning in February 2015, Butt devised a scheme whereby he defrauded FedEx by opening various shipping accounts. He would ship one or more packages of cell phones and electronics to Dubai and elsewhere until the charges were declined and he could no longer ship on that account. He would then open new accounts to continue his scheme and would again not pay his shipping invoices, causing significant losses to FedEx.
U.S. District Judge Keith P. Ellison accepted the plea today and set sentencing for April 4, 2017. At that time, Butt faces up to 20 years in federal prison as well as a possible $250,000 maximum fine. He could also be ordered to pay restitution in the amount of $287,679. He will remain in custody pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney Heather Winter is prosecuting the case.