Michael Chaves, Defrauding Amazon, Rhode Island 2023

PROVIDENCE – Michael Chaves, a 40-year-old ex-owner of an East Providence automobile transport company, has been arrested and charged with allegedly executing an elaborate scheme to defraud Amazon. The scheme allegedly involved fraudulent transactions and theft of inventory through falsely represented returns, netting Chaves over $643,000 in concessions or refunds.

According to court documents, since March 2017, Chaves has held approximately 30 Amazon customer accounts under various names and email addresses. Over this time period, Chaves’ accounts placed approximately 10,795 orders totaling approximately $713,970.78, most of which have been refunded based on Chaves’ return of the items purchased. Chaves received a total of approximately $643,324.04 in concessions or refunds on approximately 7,450 orders, including nearly approximately 7,200 items that were physically returned to Amazon.

Many of the returned items were sent back in the original packaging in an attempt to deceive Amazon’s incoming inspection process. Amazon’s standard inspection process flagged approximately 149 of the returned items as potentially fraudulent, valued at $23,872.89. Investigators found a room containing many opened and unopened Amazon packages and packaging materials at Chaves’ business location, which appeared to be a packing area for Amazon returns.

The room contained a wide-ranging variety of items such as televisions, incense, European wall plugs (some for phone chargers), computer parts, small electronics, and a significant quantity of auto parts. At a later date, a United Parcel Service (UPS) driver told investigators that he would stop at Chaves’ business location every day delivering Amazon packages and picking up returns, often times dropping off an Amazon package one day and picking up the same package the next day as a return back to Amazon.

Currently, Chaves has six active Amazon accounts. The majority of Chaves’ purchases and returns consist of auto and commercial motor vehicle parts. Chaves also purchased and returned many other non-vehicle related items, including, but not limited to; electronics including cellular telephones and televisions, household items including chandeliers, closet organizers, lawn sheds, lawn mowers, and vacuum cleaners. Most of these items were returned in an unsellable condition.

The court documents also cite examples of purchases and fraudulent returns, including Chaves having ordered a commercial truck tire and sending back two pieces of wood; Chaves having ordered Apple Air Pod Pros and returning an unopened package of mini light bulbs; Chaves ordering a vehicle suspension joint and returning an oil filter wrench; and Chaves ordering a stabilizer bar link kit and returning a pipe wrench.

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