The conviction of the husband-wife team in Amazon’s case, it signals huge problem with the return of fraud

Hagerstown, MD, united states – June 2, 2014: Image of a Amazon packages. Amazon is an online company and is the largest retailer in the world. (jahcottontail143) (Credit: iStock)


The condemnation of the three people who are more than $1 million in exchange fraud at Amazon refers to a cottage industry of false declarations.

Earlier this month, United States Attorney Josh Minkler announced that three persons were sentenced to 71 months for defrauding Amazon $1.2 million in consumer electronics items.

Erin Finan, 38, and Lea Finan, 38, a man and a woman from Indiana, pleaded guilty to federal mail fraud and money laundering charges, the Department of Justice, U. S. Attorney’s Office, Southern District of Indiana, said earlier this month.


The two were sentenced to 71 months and 68 months. Danijel Glumac, 29, of Indianapolis, pleaded guilty to money laundering and displays the items of the Finans stable and was sentenced to 24 months in prison.

The three went on a throwback binge between 2014 and 2016, stealing and selling over 2,700 items, including GoPro, digital camera’s, Microsoft Xboxes, Microsoft Surface tablets, and MacBooks.

The scheme works by making use of Amazon’s customer service policy. In fact, they claim that the items they ordered were damaged or not working, and then to request and receive a replacement from Amazon, free of charge, the U. S. Attorney’s office said in a statement.

The Finans would be thousands of Amazon orders, create several false identities, and for the stolen goods from the retail uk shops all over Indiana, the U. S. Attorney’s office said. Then sell them to their fence, Glumac. In the past two years, they made about $ 750,000.


Return fraud “way of life”

“Fraud had become a way of life. Their Amazon arrangement was their ‘job,'” the attorney of the V. S. said in a statement.

This is reflected in the figures reported by the National Retail Federation (NRF) in a targeted survey for 2017. Of the total annual returns and exchanges, the average fraudulent return was expected to be 10.8 percent, an increase of 8.8 percent in 2015, according to the NRF.

“Return fraud remains a serious threat to the retail industry,” the NRF said in its 2017 Organized Retail Crime Survey. The most common (about two thirds) is “the return of the stolen goods, employee return fraud,” the NRF said.

And Appriss Retail, which works with the NRF, said in a report (which refers to the NRF’s numbers) that the estimated amount of return fraud and abuse as a percent of the total return is $22.8 billion in 2017 for retailers.


“It is critical to understand how returns and return fraud reduce net sales and contribute to the overall loss – clear causes of the performance of the retail problems,” said Krishnan Sastry, president of Appriss Retail in a statement.

But there is a fine line between fraud, abuse, and someone who, for apparently legitimate reasons, a lot of it back, if this thread on tech-site Techwalls.

For those who abuse the system, however, the ministry of justice is watching. “For those who try to take advantage of the convenience of online shopping through fraud, remember this case. You will be caught. You will be prosecuted. And you go to federal prison for a long time,” the U. S. Attorney’s office said.

Amazon would not comment on the U. S. attorney ‘ s report.

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