LOS ANGELES – A brazen scheme to siphon millions of dollars in electronics from a national retailer has been exposed, with federal prosecutors unsealing a superseding indictment against twelve individuals. The operation, allegedly spearheaded by Abdallah Osseily, 34, of Irvine, relied on fraudulently obtained discounts and pilfered employee identification numbers to fund a nationwide buying spree.
The 54-count grand jury indictment details a conspiracy spanning from July 2014 to March 2020, where Osseily and his co-conspirators systematically exploited vulnerabilities in the purchasing and return policies of “U.S. Retailer 1.” The indictment alleges unauthorized use of discounts reserved for employees, veterans, and even manipulated return policies to generate illicit store credits. This wasn’t petty theft; it was a calculated, multi-million dollar operation.
Four defendants – including Osseily – were arrested Wednesday by FBI special agents. Three appeared in United States District Court in Santa Ana and were released on bond. Another was apprehended in Arizona and made his initial court appearance in Phoenix. The remaining eight defendants are expected to be brought before a federal court in the coming weeks. An October 13 trial date has been set, promising a full airing of the evidence.
The indictment paints a picture of a highly mobile operation. Defendants traveled to hundreds of U.S. Retailer 1 locations across the country, purchasing electronics and shipping the loot either to Osseily’s Irvine residence or, in one instance, a staggering 500 pounds of goods directly to Los Angeles International Airport. Osseily then allegedly resold the merchandise to third parties, conveniently underreporting his profits to the IRS – adding tax evasion to the list of offenses.
This superseding indictment replaces a previous one filed in June 2019, which initially only charged Osseily with bank fraud, attempted unlawful procurement of naturalization, and false statements in an immigration proceeding. The expanded charges now include conspiracy, mail fraud, wire fraud, bank fraud, and aggravated identity theft, reflecting the full scope of the alleged criminal enterprise. If convicted on all counts, Osseily faces a potential sentence exceeding 100 years in federal prison.
The investigation was a joint effort by the FBI’s Joint Terrorism Task Force and IRS Criminal Investigation. Assistant United States Attorneys Annamartine Salick, Matthew J. Jacobs, and Daniel G. Boyle are prosecuting the case. Remember, an indictment represents allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. But the evidence, as laid out by the feds, suggests a sophisticated and far-reaching fraud scheme that preyed on a national retailer and cheated taxpayers.
Related Federal Cases
- Google Cornered: AG James Nails Tech Giant in Ad Monopoly Case · New Hampshire
- Live Nation Faces Lone Fight: NY AG Rejects DOJ Deal · Washington
- Live Nation & Ticketmaster Face Antitrust Fight in NY · Washington
- Yoga Boss Gumucio Gets 4 Years for $1M Tax Dodge · Washington
- GI Bill Grift: Six Charged in $20M Veteran Scam · Illinois
Key Facts
- State: California
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
