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Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of Texas

Tuesday, July 18, 2017

Pakistani Man Heads to Prison for Defrauding FedEx of Nearly $300,000

HOUSTON A 32-year-old Pakistani national who resided in the local area has been ordered to federal prison following his convictions on six counts of mail fraud, announced Acting U.S. Attorney Abe Martinez. Babar Butt resided in multiple locations in Houston and Spring and operated an electronics export business, routinely shipping items to Dubai, United Arab Emirates.


Today, U.S. District Judge Keith P. Ellison, who accepted the guilty plea, handed Butt a 21-month sentence. He was further ordered to pay $287,679 in restitution to FedEx. In handing down the sentence, Judge Ellison found that Butt was in the business of fencing stolen property and noted that Butt’s conduct was deplorable. Not a U.S. citizen, Butt is expected to face deportation proceedings following his release from prison.


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.


Butt will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.


The FBI conducted the investigation. Assistant U.S. Attorney Heather Winter is prosecuting the case.

Financial Fraud
Updated July 18, 2017