A Ypsilanti man has been sentenced to 50 months in prison for his role in a complex online refund scheme, announced United States Attorney Jerome F. Gorgon Jr.
Mubasher Riaz, 50, of Ypsilanti, Michigan, was sentenced last week by the Honorable Matthew F. Leitman for conspiracy to commit wire fraud.
The investigation, led by the Federal Bureau of Investigation (FBI), uncovered a scheme in which Riaz and his brother, Muzzammil Riaz, purchased online goods using fraudulent identities, virtual private networks, different electronic devices, and other means intended to avoid fraud detection by online vendors.
The defendants purchased goods from hundreds of vendors, including cell phones, tablets, electronic doorbells, and clothing. After receiving the purchased goods, defendants submitted refund claims, falsely claiming the purchased goods were defective. Despite submitting a refund, the defendants did not return the purchased goods.
Instead, the defendants shipped back an empty box, a counterfeit item, or alternative item such as a book that matched the expected shipment weight of the return. Riaz would then resell the unlawfully obtained goods for profit.
FBI agents uncovered the scheme while executing a search warrant at the home of Mubasher Riaz in November 2023. At the time, Mubasher was under investigation for sexual exploitation of children. In connection with that case, Mubasher Riaz was sentenced to 188 months in prison earlier this year by the Honorable Sean F. Cox.
As part of Riaz’s sentence, he forfeited $400,000.00 of the liquidated fraud proceeds and forfeited 91 electronic devices as proceeds traceable to his fraud scheme. Riaz will also be ordered to repay his victims. A restitution hearing has been scheduled for February 4, 2026.
The FBI believes many possible victims of the scheme exist. Potential victims are encouraged to contact the Federal Bureau of Investigation at fbi.gov/mubasherriazvictims.
Key Facts
- State: Michigan
- Category: Cybercrime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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