June 14, 2018
How much can a liberal return policy cost e-commerce merchants in fraud? For Amazon it was more than $1 million over two years to one couple. U.S. Attorneys in Indianapolis recently and successfully prosecuted an Indiana couple who ordered more than 2,700 items and falsely claimed they were damaged or not working. Amazon sent replacements to the couple who would then sell them through another individual. Between 2014 and 2016, Erin and Leah Finan sold $1.2 million worth of video cameras, game consoles, smartwatches, laptops and more that Amazon resent after false claims.
“The lengthy prison sentences handed down to each of these individuals show that there are devastating consequences to those who think they can make a living off of crime and defrauding others,” said Gabriel Grchan, Special Agent-in-Charge for IRS Criminal Investigations, one of the agencies that investigated the case. “IRS Criminal Investigation is committed to using its resources to unravel complex financial transactions in order to protect corporations and consumers alike in Indiana.”