The Vancouver Sun reports in its Wednesday edition that Canada Post has filed a lawsuit against a B.C. man, seeking over $449,000 in lost revenue through an allegedly fraudulent scheme that involved altering prepaid mailing labels. The Sun's Susan Lazaruk writes that the Crown corporation alleges Jackson Lam manipulated more than 11,000 prepaid return labels that companies provide to on-line customers and used them instead to make deliveries of an energy drink to his customers, according to the lawsuit filed in B.C. Supreme Court. The lawsuit alleges Mr. Lam "operated an energy drink business under the moniker Prime Hydration Co." through the now-defunct primehydrationco.ca website. The company's address was a UPS outlet in Burnaby. Canada Post alleges Mr. Lam went on-line to request return labels from companies like Bell, Shaw, Cogeco and others. Then the labels were altered so instead of parcels with unwanted merchandise being returned to those companies, the mailed packages contained energy drinks and were delivered to Prime Hydration's customers. Canada Post normally gets paid for shipping costs after a return label is scanned during delivery. Canada Post is still trying to figure out how the system was allegedly gamed.
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