{"id":50719,"date":"2022-08-29T13:54:24","date_gmt":"2022-08-29T20:54:24","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=50719"},"modified":"2022-08-29T13:54:58","modified_gmt":"2022-08-29T20:54:58","slug":"man-who-stole-1-3-million-from-amazon-through-refund-scam-sentenced-to-prison","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=50719","title":{"rendered":"Man Who Stole $1.3 Million from Amazon Through Refund Scam Sentenced to Prison"},"content":{"rendered":"<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>\u00a0\u00a0\u00a0LOS ANGELES<\/strong>\u00a0<\/span><\/p>\n<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-1611 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/03\/FBI-Logo-300x209.jpg\" alt=\"\" width=\"300\" height=\"209\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/03\/FBI-Logo-300x209.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/03\/FBI-Logo.jpg 500w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>A third-party seller on Amazon.com was sentenced Monday to 18 months in federal prison for gaming the online retailer\u2019s payment system in a scheme that defrauded the company out of more than $1.3 million.<\/span><\/p>\n<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Ting Hong Yeung, 40, of Hacienda Heights, was sentenced by United States District Judge Stephen V. Wilson, who also ordered him to pay $1,302,954 in restitution.<\/span><\/p>\n<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yeung pleaded guilty on June 6 to one count of wire fraud.<\/span><\/p>\n<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1073 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2.jpg\" alt=\"\" width=\"299\" height=\"188\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2.jpg 299w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2-120x76.jpg 120w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2-265x168.jpg 265w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2-284x180.jpg 284w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2-274x173.jpg 274w\" sizes=\"auto, (max-width: 299px) 100vw, 299px\" \/>Amazon allows third-party sellers to use its online retail platform for advertising items, making sales, and communicating with customers. Ordinarily, when an Amazon customer purchases an item listed by a third-party seller, Amazon credits the third-party seller\u2019s internal Amazon account for the amount of that purchase. <\/span><\/p>\n<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">About every two weeks, Amazon disburses into the seller\u2019s bank account the proceeds of those sales for which the seller has provided proof that the items purchased have been shipped \u2013 namely, the shipment tracking numbers, officials stated.<\/span><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4817 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/07\/Justice-Scales-300x102.jpg\" alt=\"\" width=\"426\" height=\"145\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/07\/Justice-Scales-300x102.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/07\/Justice-Scales.jpg 675w\" sizes=\"auto, (max-width: 426px) 100vw, 426px\" \/><\/p>\n<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Yeung operated as an Amazon third-party vendor using business names including \u201cSpeedy Checkout,\u201d \u201cSpecial SaleS\u201d and \u201cCalifornia Red Trading Inc,\u201d officials stated.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 24px;\">Yeung has admitted to causing Amazon to suffer approximately $1,302,954 in losses. He has agreed to pay restitution, some of which will be paid with gold and silver bars that investigators seized during a search of his residence in February 2022.<\/span><\/p>\n<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">After enough time passed to allow his businesses to appear to be reputable vendors, Yeung would list expensive merchandise, such as furniture and home d\u00e9cor, at cut-rate prices to drive a spike in sales.<\/span><\/p>\n<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">However, instead of shipping purchased items to the customers, Yeung provided Amazon with bogus tracking numbers. <\/span><\/p>\n<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\"><a href=\"https:\/\/cjnotebook.com\/photo-by-ruchindra-gunasekara\/\" rel=\"attachment wp-att-50720\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-50720 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/08\/gk8x_xccdzg-225x300.jpg\" alt=\"large warhause\" width=\"225\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/08\/gk8x_xccdzg-225x300.jpg 225w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/08\/gk8x_xccdzg-768x1024.jpg 768w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/08\/gk8x_xccdzg.jpg 900w\" sizes=\"auto, (max-width: 225px) 100vw, 225px\" \/><\/a>When customers complained about not receiving their purchases, Yeung delayed customer refund requests long enough to ensure that Amazon would disburse funds into his businesses\u2019 bank accounts. <\/span><\/p>\n<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">As a result, Yeung collected payment for items that were never shipped and relied on Amazon to issue refunds to his disgruntled customers under its \u201cA-to-z Guarantee.\u201d<\/span><\/p>\n<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">In some instances, instead of sending customers the products they ordered, Yeung shipped them cheap crystal ornaments, which served the dual purpose of generating tracking numbers that induced Amazon to disburse customer funds and forestalling customer complaints and demands for refunds. <\/span><\/p>\n<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">Yeung also used Amazon\u2019s Buyer-Seller Messaging Service to convince customers that their orders were on their way when, in fact, they were not, according to officials.<\/span><\/p>\n<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-50721 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/08\/lx5ofzfjhwk-155x300.jpg\" alt=\"\" width=\"224\" height=\"434\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/08\/lx5ofzfjhwk-155x300.jpg 155w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/08\/lx5ofzfjhwk-527x1024.jpg 527w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/08\/lx5ofzfjhwk.jpg 618w\" sizes=\"auto, (max-width: 224px) 100vw, 224px\" \/>On occasion, Yeung provided goods to his customers that he obtained through his own fraudulent purchases from Amazon, which he made using credit cards in the names of other people and fictitious identities. <\/span><\/p>\n<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">After the goods were delivered to his customers, Yeung requested refunds for the goods from Amazon. Yeung often falsely claimed that he was entitled to a refund because the product was \u201cDifferent from what was ordered\u201d and then returned lower-value items rather than the merchandise he had originally ordered. <\/span><\/p>\n<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">As a result, Yeung received both the refund and the proceeds of the original sale to his own customer.<\/span><\/p>\n<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u201c[Yeung] perpetrated his fraud over the course of roughly seven years, collecting more than $1.3 million,\u201d prosecutors argued in a sentencing memorandum. \u201cHe forced his victim into an elaborate game of Whac-A-Mole: when Amazon uncovered and shut <\/span><span style=\"font-size: 24px;\">down a fraud scheme involving one of (the) defendant\u2019s companies, he simply began it anew with another.\u201d<\/span><\/p>\n<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The FBI investigated this matter and received cooperation from Amazon.<\/span><\/p>\n<p class=\"yiv9293640510MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 24px;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Assistant U.S. Attorney Alexander B. Schwab of the Major Frauds Section prosecuted this case.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0 A third-party seller on Amazon.com was sentenced Monday to 18 months in federal prison for gaming the online retailer\u2019s payment system in a scheme that defrauded the company out of&#8230;<\/p>\n","protected":false},"author":1,"featured_media":30317,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-50719","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-department-of-justice"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Man Who Stole $1.3 Million from Amazon Through Refund Scam Sentenced to Prison<\/title>\n<meta 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