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$9M Credit Card Refund Scheme Lands Man 10 Years in Prison
In a brazen credit card refund scheme, Michael Cooper, 30, of Orlando, Florida, has been sentenced to 10 years in prison. Cooper’s scam, which operated from 2012 to 2016, netted him and his employees a staggering $9 million in fraudulent refunds from at least 76 different businesses.
Cooper’s scheme targeted small business owners who had paid credit card companies for internet services. He and his employees would pose as lawyers and claim to be conducting ‘arbitration’ to recover money paid by the business owners. In reality, they were simply impersonating the business owners and fabricating contracts to obtain refunds.
Cooper charged his clients 40 percent of any amount recovered, which in this case, was $9 million. The scheme was uncovered after an investigation by the FBI and IRS-CI, with assistance from the U.S. Postal Inspection Service.
Cooper was sentenced to 10 years in prison by Senior U.S. District Judge Robert E. Payne. Four of his employees, Dustin Lee Faulkner, Ashley R. Davis, Gustavo Carvajal, and Michael E. Gordon, have also pleaded guilty to conspiracy to commit mail fraud and have been sentenced accordingly.
The investigation was led by the FBI’s Richmond Field Office and the IRS-CI’s Washington, D.C. Field Office. Assistant U.S. Attorneys Katherine Lee Martin and Thomas A. Garnett prosecuted the case.
The case highlights the importance of vigilance in protecting against credit card scams. Business owners and individuals are reminded to be cautious when receiving unsolicited calls or emails, and to never provide sensitive information without verifying the identity of the caller or sender.
Cooper’s sentence serves as a warning to those who would seek to exploit the financial system for personal gain. The Grimy Times will continue to follow this case and provide updates as more information becomes available.
Key Facts
- State: Virginia
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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