A 32-year-old Pakistani national from Houston area has pleaded guilty to six counts of mail fraud, causing significant losses to FedEx.
Babar Butt faces up to 20 years in federal prison as well as a possible maximum $250,000 fine, U.S. Attorney Kenneth Magidson announced Jan. 17. U.S. District Judge Keith P. Ellison accepted Butt’s plea last week and set sentencing for April 4.
Butt, according to the prosecutor’s office, 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. The FBI conducted the investigation.
The prosecutor’s office said in a press release that Butt could also be ordered to pay restitution in the amount of $287,679. He will remain in custody pending that hearing.