Reselling products can be a good way to make money. Reselling stolen products, on the other hand, is a good way to get arrested.
A Maryland man is finding this out the hard way. The 36-year-old man from Baltimore has just received sentencing for tax fraud and federal conspiracy charges.
The man ran a fraud scheme between 2014 and 2019. He controlled three eBay accounts, named AffordableGoodies4You (AG), HiddenGemFurniture (HGF), and EddiesAffordableGear (EAG). One was a furniture store, while the other two sold sports-related merchandise such as shirts and jerseys. The man also operated PayPal accounts related to the stores.
In 2014, the man allowed a close friend and a relative of that friend to sell goods and merchandise through his eBay accounts. They then conspired to sell stolen goods via the man’s eBay and PayPal accounts.
The men deceived Amazon, eBay, and various manufacturers as to the source of the goods and merchandise they sold. There was more than $3 million in stolen goods and merchandise, including $125,000 of iPods stolen from a New Mexico school district. The stolen Apple products were purchased from a New Mexico public school employee who was supposed to give them to underprivileged Native American children. In 2019, one of the men purchased additional Apple products believed to be stolen by a different person working at another school district in New Mexico. They include 25 iPads that were sold online through eBay at a substantial markup.
In 2018, the men sold more than $550,000 of goods stolen from a FedEx facility in Delaware.
The Baltimore man also admitted to filing false tax returns between 2014 and 2018, in which the gross receipts and cost of the goods sold were significantly inflated. He also overstated his postage expenses. The man now owes an additional $36,518 in taxes.
The Baltimore man was sentenced to one year and one day in federal prison and six months of home detention. He also faces three years of supervised release for tax fraud and federal conspiracy charges.
The two other men were sentenced to 42 and 66 months in federal prison. One of the men had to pay $713,619 to the IRS. The other man was ordered to pay $1,101,743.91 in restitution.
Stealing from an organization and then attempting to profit off these stolen goods is an example of fraud. It is even possible for those who knowingly receive stolen products to be charged with a crime.
These are types of white collar crimes that can be punished severely. Seek legal help from a Columbia white collar crime lawyer at The Law Offices of Todd K. Mohink, P.A. We can defend you from state and federal charges. To schedule a free consultation, fill out the online form or call (410) 774-5987. We have two offices to serve you.
7310 Ritchie Highway, Suite 910
Glen Burnie, MD 21061
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10440 Little Patuxent Parkway,
Columbia, MD 21044