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UPC Switching Scammer Gets 5 Years
A brazen UPC switching scammer is headed to prison for five years after bilking Wal-Mart out of nearly $200,000. Robert James Mercer, 46, of Tampa, was sentenced by U.S. District Judge James D. Whittemore on September 23, 2014, for his role in the massive fraud scheme.
According to court documents, Mercer and his co-conspirators would travel to Wal-Mart stores in several states, including Florida, Alabama, Mississippi, Colorado, and Texas, between November 2013 and April 4, 2014. The scammers would purchase high-value merchandise, including a whole-house water filtration system, using counterfeited or altered Universal Product Codes (UPC).
The scam worked by buying a $19 UPC sticker and using it to ring up a $300 water filtration system, allowing the scammers to return the item for a cash refund. Mercer, who supervised the operation and controlled the proceeds, would then pay his co-conspirators for their roles in the scheme.
Assistant United States Attorney Mandy Riedel is prosecuting the case, which was investigated by the United States Secret Service and the Pinellas County Sheriff’s Office. Four others were also charged in the case, including Luis Schomaker, who was charged by criminal complaint with conspiracy to commit wire fraud.
Co-conspirators David Dunn, Sandra Walker, and Michael Odhiambo have each pleaded guilty to conspiracy to commit wire fraud and will be sentenced at a later date. Mercer pleaded guilty on June 19, 2014, and was sentenced to five years in federal prison, with a money judgment of $130,000 entered against him.
The brazen scheme was uncovered after the scammers racked up an estimated $200,000 in losses for Wal-Mart. Mercer’s sentence is a reminder that these types of scams are taken seriously by law enforcement, and those who engage in them will face severe consequences.
As the investigation continues, it’s clear that the UPC switching scam was a sophisticated operation that relied on counterfeited or altered UPC codes to deceive retailers. It’s a chilling reminder of the lengths to which scammers will go to make a buck, and the importance of remaining vigilant in the face of these types of crimes.
Key Facts
- State: Florida
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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