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Complete Story
08/25/2020
Amazon assists prosecution of $19 million fraud case
Chain Store Age
Four individuals accused of defrauding Amazon of millions of dollars are facing federal charges, in part due to actions taken by the e-tailer.
The Southern District of New York is bringing up brothers Yoel, Heshl, Zishe, and Shmuel Abraham on charges of engaging in a scheme to systematically defraud Amazon. Through the course of the scheme, the defendants allegedly manipulated Amazon’s vendor system in attempts to fraudulently induce Amazon to pay for goods that the e-tailer had not ordered.
In executing the scheme, the defendants are accused of fraudulently attempting to obtain at least approximately $32 million and successfully obtaining at least approximately $19 million. The defendants opened vendor accounts with Amazon to sell the company small quantities of goods. By accepting a purchase order, the defendants agreed to supply specific goods, at specific prices, in specific quantities.
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