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Pakistani man convicted of defrauding FedEx of USD 300,000

Houston: A Pakistani-origin man in the US has pleaded guilty for defrauding American courier company FedEx by opening various shipping accounts causing losses of nearly USD 300,000 to the enterprise.

Babar Butt, 32, resided in multiple locations in Houston and Spring and operated an electronics export business, routinely shipping items to Dubai in the UAE.

Butt has pleaded guilty to six counts of mail fraud, announced US Attorney Kenneth Magidson.

Beginning in February 2015, he devised a scheme whereby he defrauded FedEx by opening various shipping accounts.

Butt 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.

US District Judge Keith P Ellison accepted the plea yesterday and set sentencing for April 4, 2017. At that time, Butt faces up to 20 years in federal prison as well as a possible USD 250,000 maximum fine.

Butt could also be ordered to pay restitution in the amount of USD 287,679. He will remain in custody pending that hearing.

The FBI conducted the investigation.