OAKLAND – A brazen nationwide fraud scheme targeting mobile shopping services has landed eight individuals in federal custody, accused of stealing over $1 million. The operation, detailed in a federal indictment unsealed today, involved exploiting stolen account credentials and manipulating the system to siphon funds into the hands of the perpetrators.
The eight defendants – Abdulkadir Mohamed Ali, 31, of Portland, Oregon; Mazen Mohamed Hassan, 24, of Columbus, Ohio; Ahmed Mohamed Ali, 36, of Troy, Michigan; Abdirahman Abdalla Mahamed, 28, of San Diego, California; Hussein Mohamed Ali, 27, of Troy, Michigan; Abubakar Mohamed Ali, 29, of Grand Rapids, Michigan; Omar Mohamed Ali, 23, of Troy, Michigan; and Yusuf Mohamed Ali, 26, of Westerville, Ohio – are each charged with one count of conspiracy to commit wire fraud and eight counts of wire fraud and aiding and abetting. Federal prosecutors allege a sophisticated phishing operation that compromised shopper accounts used by two mobile shopping services based in San Francisco, California and Birmingham, Alabama.
The scheme reportedly worked by obtaining a stolen list of active and inactive “shopper” accounts – individuals who fulfill customer orders. Once inside, the defendants allegedly placed bogus orders through the mobile apps. They then impersonated the shoppers, accepting these fictitious orders. This triggered the loading of funds onto digital debit cards controlled by the defendants, ostensibly to cover the cost of the fake purchases. Instead of buying the ordered goods, they allegedly used the funds to purchase gift cards.
Those gift cards weren’t used for legitimate shopping, however. The indictment details how the defendants allegedly used the gift cards to buy cryptocurrency, converting it into U.S. currency, or completing online orders for their own personal gain. The total loss to the two mobile shopping companies exceeds $1 million. Law enforcement moved swiftly this morning, arresting Yusuf Mohamed Ali and Mazen Hassan Mohamed in Columbus, Ohio; Abubakar Mohamed Ali in Grand Rapids, Michigan; Abdulkadir Mohamed Ali in Portland, Oregon; and Ahmed Mohamed Ali, Abdirahman Abdalla Mahamed, Hussein Mohamed Ali, Abubakar Mohamed Ali, and Omar Mohamed Ali in Detroit, Michigan.
All defendants have made initial appearances in federal district court. U.S. Attorney Craig H. Missakian, alongside FBI Special Agent in Charge Sanjay Virmani and U.S. Secret Service Special Agent in Charge Shawn Bradstreet, announced the arrests today. They are currently released on bond and are scheduled to reappear in federal court in Oakland on August 25, 2025, before Chief U.S. Magistrate Judge Donna M. Ryu. The investigation was a joint effort between the FBI and the USSS San Francisco Field Office.
An indictment is not a finding of guilt. Each defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each faces a maximum sentence of 20 years in prison and a $250,000 fine per count of conspiracy to commit wire fraud and wire fraud. Sentencing will be determined by the court, considering U.S. Sentencing Guidelines and federal statutes. Assistant U.S. Attorneys Kenneth Chambers and Evan Mateer are prosecuting the case, with assistance from Amala James and Andy Ding.
Related Federal Cases
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- Loretta E. Lynch, Community Policing Report, Oregon 2017 · Oregon
- Mobile Shopping Service Wire Fraud, California 2024 · Oregon
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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