Bender Sentenced for Stolen Goods Sale and Tax Fraud

Baltimore, Maryland – In a stunning blow to the cybercrime world, U.S. District Judge Catherine C. Blake has sentenced James Bender, 36, of Baltimore, to one year and one day in federal prison for his role in a massive conspiracy to sell stolen goods and commit tax fraud.

The sentence was handed down by United States Attorney Erek L. Barron; IRS Criminal Investigation’s Darrell J. Waldon; and Homeland Security Investigations’ James R. Mancuso.

Bender, through three eBay accounts, controlled by HiddenGemFurniture (HGF), EddiesAffordableGear (EAG), and AffordableGoodies4You (AG), admitted to selling stolen merchandise including jerseys, shirts, and over $125,000 worth of iPods stolen from a New Mexico school district.

From 2014 through August 2019, Bender conspired with Saurabh Chawla and SC2 to use his eBay and PayPal accounts to sell stolen goods. The duo deceived online platforms, manufacturers, and distributors about the origin of the merchandise, netting over $3 million in sales.

Bender also filed false tax returns for the years 2014-2018, falsely inflating gross receipts and cost of goods sold, evading nearly $37,000 in taxes. He received over $10,000 annually from eBay sales of stolen goods.

Co-defendant Kristy Stock, a New Mexico public school employee, was involved in the theft of over 3,000 iPods intended for underprivileged children, selling them to Chawla for more than $800,000. The scheme came crashing down as Chawla continued to sell stolen Apple products online.

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