Baltimore’s James Bender Sentenced for Stolen Goods and Tax Fraud

Baltimore, Maryland – In a stunning blow to the local criminal underworld, James Bender, 36, was sentenced by U.S. District Judge Catherine C. Blake to one year and one day in federal prison, followed by six months of home detention and three years of supervised release for his involvement in a massive stolen goods and tax fraud scheme.

The sentence was handed down by United States Attorney Erek L. Barron; IRS Criminal Investigation Special Agent Darrell J. Waldon; and Homeland Security Investigations (HSI) Baltimore’s James R. Mancuso, following Bender’s guilty plea.

According to court documents, Bender controlled three eBay accounts between 2014 and August 2019: HiddenGemFurniture (HGF), EddiesAffordableGear (EAG), and AffordableGoodies4You (AG). These accounts were used to sell stolen goods, including merchandise worth more than $3 million. Over $125,000 of these goods were iPods stolen from a New Mexico school district intended for underprivileged children.

Bender conspired with Saurabh Chawla and SC2 to use his eBay and PayPal accounts to sell stolen merchandise, reaping over $10,000 annually. The plea agreement revealed that Bender also filed false tax returns from 2014 to 2018, fraudulently inflating gross receipts and cost of goods sold by reporting income generated through Chawla’s sales.

Additionally, Bender admitted to subscribing to false information on his tax returns, including overstating postage expenses. As a result, he failed to pay the United States an additional $36,518 in taxes. Co-defendant Saurabh Chawla was involved in purchasing stolen Apple products from Kristy Stock, a New Mexico public school employee, who stole over 3,000 iPods worth more than $1 million.

This case is a stark reminder of the lengths some will go to profit from illegal activities, and it underscores the importance of law enforcement’s efforts to combat such crimes. Bender’s sentence serves as a warning to others considering similar schemes.