Greenville, RI – In a brazen scheme to deceive banks, a 64-year-old Rhode Island man has been sentenced to 28 months in prison for artificially inflating his company’s sales numbers to avoid scrutiny over excessive consumer chargebacks.
Michael Brian Cotter, CEO of a tech support company operating out of a call center in India, orchestrated the years-long bank fraud conspiracy with his co-conspirators. When banks began restricting the company’s ability to process debit and credit card payments due to fraud and chargeback concerns in 2016, Cotter and his accomplices resorted to purchasing virtual debit cards to run thousands of sham transactions on their own merchant accounts.
This tactic allowed Cotter to artificially inflate the company’s sales numbers, making it appear to banks and their agents that the company’s chargeback ratios were within acceptable levels. However, this scheme involved using actual customer personal identifying information without their knowledge or consent to disguise the transactions from banks.
Cotter’s scheme ultimately led to his downfall, as he pleaded guilty to conspiracy to commit bank fraud. The case serves as a stark reminder of the consequences of bank fraud and the importance of transparency in financial transactions.
The investigation and prosecution of Cotter’s case highlight the ongoing efforts of law enforcement agencies to combat financial crimes and protect consumers from fraudulent activities.
Source: Department of Justice
