FOX 2 - An Ypsilanti man has pleaded guilty to conspiracy to commit wire fraud using an online refund scheme, according to the US Attorney's Office Eastern District of Michigan.
The backstory:
Mubasher Riaz was part of an online refund scheme with his brother Muzzammil Riaz from July 2017 through his arrest in November, 2023.
Both men admitted to purchasing online goods using fraudulent identities, virtual private networks, different electronic devices, and other means intended to avoid fraud detection by online vendors as part of their pleas.
The defendants bought from hundreds of sellers, including cell phones, tablets, electronic doorbells, and clothing. Thery then submitted refund claims, lying that the goods were defective.
The Riaz brothers never returned the goods they bought. They resold them for a profit. In the meantime, they would ship back an empty box, a counterfeit item, or alternative item such as a book that matched the expected shipment weight of the return to the original sellers they bought from.
The total loss incurred by online vendors was over $400,000.
Riaz and his brother, Muzzammil Riaz, were charged with conspiracy to commit wire fraud earlier this year. Muzzammil pleaded guilty to his lesser role in the scheme on June 4.
FBI agents uncovered the scheme while executing a search warrant at the home of Mubasher Riaz in November 2023.
Mubasher was under investigation for sexual exploitation of children. Agents found evidence of fraud in the home, including over 40 cell phones and 30 tablets that were individually labeled with the personal identifying information of different identities used for the fraud scheme.
While the defendants used numerous accounts, some of the more common accounts used to make the online purchases and fraudulent refunds include the following:
docriaz1983@gmail.com
honorrollmd@gmail.com
joota429@gmail.com
muza34082@outlook.com
juka4299@gmail.com
juano42@yahoo.com
Law enforcement believes many possible victims of the scheme exist. Potential victims are encouraged to contact the Federal Bureau of Investigation at THIS LINK.
The Source: Information for this report is from the US Attorney's Office Eastern District of Michigan.