PITTSBURGH, PA — A Los Angeles County resident was sentenced to nine months in federal prison after pleading guilty to a mail fraud scheme involving more than 6,000 fake claims for lost or damaged packages, defrauding a major ground shipping company over a two-year period.
Ting Hong Yeung, 43, of Hacienda Heights, California, pleaded guilty Thursday in Pittsburgh federal court to one count of mail fraud. Chief U.S. District Judge Mark R. Hornak handed down the sentence, which includes three years of supervised release following imprisonment.
According to federal prosecutors, Yeung orchestrated the fraud between August 2018 and June 2020 by submitting thousands of false claims through various corporate entities, alleging that ground shipments had been lost or damaged when they had not. These fake claims resulted in settlement payouts, causing substantial financial losses to the delivery company.
Investigators said the scheme relied on systematically exploiting claim submission processes meant to compensate customers for legitimate shipping errors. The scope of the fraud was described in court as “large-scale,” with over 6,000 fraudulent claim requests filed during the nearly two-year period.
Chief Judge Hornak emphasized the seriousness of the scheme and its impact on the victim company before issuing the sentence.
Yeung’s prosecution was handled by Assistant U.S. Attorney Nicole A. Stockey, and the case was investigated by the Federal Bureau of Investigation.
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Key Points
- Ting Hong Yeung submitted over 6,000 fake shipping claims between 2018 and 2020
- He received payouts for losses and damages that never occurred
- Yeung was sentenced to nine months in federal prison and three years of supervised release
California man faked thousands of package claims in shipping scam that netted major payouts