Eight Conspirators Charged in $1M Shopping Service Fraud Scheme

OAKLAND – A federal grand jury has brought charges against eight alleged members of a nationwide scheme to defraud two mobile shopping service companies. The defendants, spanning California, Michigan, Ohio, and Oregon, face serious accusations including conspiracy to commit wire fraud.

According to the indictment unsealed today, Abdulkadir Mohamed Ali, 31, Mazen Mohamed Hassan, 24, Ahmed Mohamed Ali, 36, Abdirahman Abdalla Mahamed, 28, Hussein Mohamed Ali, 27, Abubakar Mohamed Ali, 29, Omar Mohamed Ali, 23, and Yusuf Mohamed Ali, 26, are accused of orchestrating a phishing scheme targeting shoppers’ accounts. They allegedly used these accounts to place fictitious orders, defrauding the companies out of over $1 million.

The defendants would then impersonate shoppers, accept the fake orders, and load funds onto digital debit cards under their control. Instead of purchasing the items ordered, they went to stores, bought gift cards, and converted them into cryptocurrency or completed online orders for personal gain.

This morning, arrests were made across the country with Yusuf Mohamed Ali and Mazen Hassan Mohamed detained 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, Omar Mohamed Ali, and Abubakar Mohamed Ali in Detroit, Michigan. All defendants faced initial appearances in federal district court.

Craig H. Missakian, U.S. Attorney for the Northern District of California, led the announcement, along with FBI Special Agent in Charge Sanjay Virmani and U.S. Secret Service (USSS) Special Agent in Charge Shawn Bradstreet. The defendants are currently released on bond and set to appear in federal district court in Oakland on Aug. 25.

Each defendant faces a maximum sentence of 20 years in prison and a fine of $250,000 for each count of conspiracy to commit wire fraud and wire fraud and aiding and abetting. Assistant U.S. Attorneys Kenneth Chambers and Evan Mateer are prosecuting the case, which is a result of an investigation by the FBI and USSS.

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