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Email bouncing before it even leaves the SBS2011 server

We are using exchange on SBS2011 and the POP connector to access mailboxes on a 1and1.com hosted site.

After completing a recent SBS2003 to SBS2011 migration, one of the forwarding email accounts on the 1and1.com site is not working.

Specifically, there is a forwarding account setup on 1and1.com, where email sent to:

staff@mycompany.com

gets forwarded to:

person1@mycompany.com
person2.@mycompany.com
person3@mycompany.com

It still works when I send a message to staff@mycompany.com from any other mail system, such as from my comcast account.

While logged on to a computer in the office where the SBS2011 server resides, as soon as I send a message via Outlook, I get an immediate reply:

Delivery has failed to these recipients or groups:

staff@mycompany.com (staff@mycompany.com)
The e-mail address you entered couldn't be found. Please check the recipient's e-mail address and try to resend the message. If the problem continues, please contact your helpdesk.

Diagnostic information for administrators:

Generating server: SERVER2.mycompany.local

staff@mycompany.com
#550 5.1.1 RESOLVER.ADR.RecipNotFound; not found ##

Original message headers:

Received: from SERVER2.mycompany.local ([fe80::38cc:60ab:9271:3737]) by
SERVER2.mycompany.local ([fe80::38cc:60ab:9271:3737%12]) with mapi id
 14.01.0218.012; Wed, 22 May 2013 17:23:02 -0500
Content-Type: application/ms-tnef; name="winmail.dat"
Content-Transfer-Encoding: binary
From: Julie Smith <Julie@mycompany.com>
To: "staff@mycompany.com" <staff@mycompany.com>
Subject: test #1 5:22PM
Thread-Topic: test #1 5:22PM
Thread-Index: Ac5XOumg7LBUvt/yTGOIfsoeHipMOw==
Date: Wed, 22 May 2013 17:23:01 -0500
Message-ID: <2D7FC9CE8203574BBB7B6CA9815044CB02325D@SERVER2.mycompany.local>
Accept-Language: en-US
Content-Language: en-US
X-MS-Has-Attach: yes
X-MS-TNEF-Correlator: <2D7FC9CE8203574BBB7B6CA9815044CB02325D@HA-SERVER2.hm.local>
MIME-Version: 1.0
X-Originating-IP: [192.168.1.65]

Why is the local exchange server intercepting this email message? I expect it to go out through the SMTP server and then back in through the POP connector.
ASKER CERTIFIED SOLUTION
Avatar of Simon Butler (Sembee)
Simon Butler (Sembee)
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ASKER

Yes, that makes sense now that you call that out. For the short run, I created a distribution group with the same name and it works as expected now.