From ABC News Blotter

Authorities say they have shut down an underground printing operation in New York City that was producing thousands of high-quality counterfeit U.S. postage stamps. 

Authorities say the quality of the counterfeit stamps was excellent and that they were destined to be sold at cut rates on the Internet or at small grocery stores in New York.

Tom Boyle, Assistant Inspector in Charge of the New York office of the USPIS, said the investigation into counterfeit stamps was triggered after postal inspectors discovered that hundreds of letters were being rejected for delivery because the stamps lacked the required phosphor tagging.

The U.S. Postal Inspection Service says such operations are just a small part of a thriving black market in bogus stamps.

The busted printing operation was being run out of an apartment on the Upper West Side of Manhattan

A raid on the facility, executed by the U.S. Postal Inspection Service and the New York City Police Department, uncovered hundreds of coils and sheets of 39 cent self-adhesive “Lady Liberty Flag” stamps, authorities said.  Investigators say they also found USPS wrappers complete with barcodes, computer software, industrial-sized cutting boards, three industrial printers and other professional printing supplies.

The financial loss to the USPS due to the New York operation was estimated at $300,000.

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