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Defendant Admits to $1.4M Staples Scam in Massachusetts Court
A Georgia couple has pleaded guilty to defrauding Framingham-based Staples, Inc. of more than $1.4 million in a complex scheme involving wire and mail fraud. John Douglas, 46, and his wife, Analyn Douglass, 41, appeared in U.S. District Court in Boston on charges of conspiracy to commit wire fraud and mail fraud.
Douglas pleaded guilty to the charges, while his wife entered a deferred prosecution agreement, admitting to her involvement in the conspiracy to ship stolen Staples goods in interstate commerce. If she abides by the terms of her agreement, the charge against her will be dismissed after one year.
The scheme, which spanned the southern United States and the eastern seaboard, including Massachusetts, involved the creation of more than 1,100 Staples rewards accounts using fictitious names, addresses, and contact information. The accounts were then used to claim over $889,000 worth of customer loyalty rewards in small increments, often less than a dollar at a time.
The rewards were then used to buy merchandise at Staples retail locations, with much of the fraudulently obtained merchandise sold on eBay by Analyn Douglass. The couple also used a similar method to claim over $527,000 in cash rebates from Staples for products that they did not purchase.
The charges against the couple provide for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater. The case was prosecuted by Assistant U.S. Attorney David J. D’Addio of the Cybercrime Unit.
Acting United States Attorney William D. Weinreb, FBI Special Agent in Charge Harold H. Shaw, and U.S. Postal Inspection Service Inspector in Charge Shelly Binkowski announced the charges today. The case is a reminder of the importance of vigilance in preventing and detecting financial crimes.
Key Facts
- State: Massachusetts
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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