Asian Man Pleads Guilty for Scamming Amazon Out of $1.3M
June 8, 2022
HACIENDA HEIGHTS, CA—An Amazon vendor from Hacienda Heights pleaded guilty on Monday for bilking the online retailer out of more than $1.3 million by manipulating the company’s payment system.
Ting Hong Yeung, 41, entered his plea to a federal wire fraud charge, according to the Department of Justice.
Yeung’s sentencing is set for August 29.
The 41-year-old admitted to gaming the Amazon payment system, resulting in him receiving payment for merchandise he listed for sale but never actually shipped to buyers, according to NBC4.
Yeung would list expensive merchandise at low-ball prices to drive up sales, however, instead of shipping the purchased items to customers, he would submit bogus tracking numbers to Amazon. When customers complained about not receiving purchases, Yeung would stall their refund requests long enough to ensure he received the customer’s money from Amazon, reports NBC4.
Basically, Yeung collected payments for items he never shipped, while Amazon would refund the disgruntled customers directly, according to federal prosecutors.
Yeung would also generate bogus shipping numbers for Amazon and send customers cheap crystal ornaments, rather than the merchandise they actually ordered. He also used Amazon’s buyer-seller messaging service to falsely assure customers their orders were on the way.
The 41-year-old would also purchase items through Amazon using credit cards of other people’s names or use fake identities. He then would request refunds claiming he received merchandise he didn’t actually order, according to NBC4.
Yeung has agreed to pay restitution to his victims, some of which will be paid with gold and silver bars authorities seized from his residence last month.