INDIANAPOLIS, Ind. – U.S. Attorney Josh Minkler announced Friday that three local individuals have been charged with an alleged scheme that defrauded over $1.2 million from Amazon.
Erin Finan, 37, and Leah Finan, 37, a husband and wife from the Muncie-Anderson area agreed to plead guilty to federal mail fraud and money laundering charges.
Danijel Glumac, 28, was also charged in a grand jury indictment for interstate transportation of stolen property and money laundering.
According to court documents, the Finans defrauded Amazon by falsely claiming that the electronics they ordered not working, and then requested and received replacements from Amazon at no charge.
In total, the Finans allegedly stole over $1.2 million in consumer electronics from Amazon, including GoPro digital cameras, Xbox’s, Samsung smartwatches, and Microsoft Surface tablets.
The couple allegedly went to great lengths to conceal their fraud, creating hundreds of false online identities to carry out the scheme.
Police say that the Finans allegedly sold the stolen electronics out of their van to Glumac at a price below retail value. Glumac then reportedly marked up the items and sold and shipped them to an entity in New York, which was then sold to the public on the black market.
“Consumer fraud is absorbed by all of us through higher retail prices,” said Minkler. “Buying and selling black market items across state lines is against federal law and those who choose to ignore that will be held accountable.”
In total, Glumac allegedly received over $1.2 million from the New York entity, of which he paid approximately $725,000 to the Finans.
Assistant United Stated Attorney Nick Linder, who is prosecuting the case, said the charges carry maximum sentences of between 10 and 20 years in prison and fines of between $250,000 and $500,000.