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eBay Seller Aided by FedEx Employee Gets 5 Years for Fraud

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eBay Seller Aided by FedEx Employee Gets over 5 Years for Fraud

An eBay seller got 5 and a half years (66 months) for selling stolen goods over a 10-year period and for tax evasion, according to the US Department of Justice.

The DOJ said according to his guilty plea and other court documents, the defendant purchased over $3.5 million of stolen goods from 2009 through 2019 from individuals with “insider” access to the goods and merchandise who stole the items without detection:

The Public School Employee (Age 46)
The defendant purchased $1 million in Apple products from a New Mexico public school employee responsible for overseeing a program to provide the devices to underprivileged Native American school children, paying her over $800,000 through PayPal.

The FedEx Employee (Age 45)
The defendant purchased large quantities of goods from a former FedEx employee who obtained most of the items from bulk purchases shipped via FedEx, including a shipment destined for a Walmart Distribution Center in Smyrna, Delaware. The defendant typically paid 50% of the retail price for the stolen goods and merchandise and sold them on eBay. In total, the defendant paid $1.5 million for the stolen goods that he resold for $3 million.

The College Friend (Age 36)
The defendant enlisted a college friend to allow him to sell stolen goods through the friend’s eBay accounts in exchange for a commission (over $10,000 per year).

The three coconspirators have pleaded guilty to their roles in the fraud scheme and are awaiting sentencing, according to the government.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

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Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

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