Rhode Island Man Sentenced to 30 Months on Multiple Fraud Charges, Including Amazon Return Scheme

Rhea-AI Summary

On March 12, the U.S. District Court of Rhode Island sentenced Michael Chaves to 30 months in prison for defrauding Amazon of over $50,000 through a fraudulent return scheme, along with charges of bank fraud, wire fraud, and tax evasion. Amazon actively supported the investigation and prosecution. The company emphasized its commitment to maintaining a safe shopping experience, stating that it has systems in place to detect and prevent fraudulent activities, thus protecting its customers and sellers.

Positive

• Amazon's proactive involvement in supporting legal action against fraud reinforces its commitment to maintaining customer trust.
• The sentencing of a fraudster helps deter similar fraudulent activities in the future, potentially safeguarding Amazon's revenue.

Negative

• None.

Amazon.com, Inc. (NASDAQ: AMZN):

What:

On Friday, March 12, The U.S. District Court of Rhode Island sentenced Michael Chaves to 30 months in federal prison for operating a fraudulent product return scheme and defrauding Amazon of more than $50,000, as well as other charges including bank fraud, wire fraud, falsification of records, aggravated identity theft, and tax evasion. Amazon supported the investigation, prosecution, and sentencing.

You can see the press release issued by the US Attorney here, and the press release following his arrest in June 2020 here.

Statement from Amazon:

We work hard to build a great shopping experience and that includes a seamless, customer-friendly returns policy. Mr. Chaves abused our policy, and we took action to protect our selling partners, our store, and the experience for all customers. We are grateful to the United States Attorney’s Office for the District of Rhode Island in their thorough pursuit of this case.

Amazon has teams and systems in place to proactively detect, investigate, and stop suspicious behavior and prohibited activity. Amazon has an extensive history of protecting its customers from fraud and abuse:

• https://press.aboutamazon.com/news-releases/news-release-details/amazon-supports-investigation-and-prosecution-four-new-york
• https://press.aboutamazon.com/news-releases/news-release-details/amazon-establishes-counterfeit-crimes-unit-bring-counterfeiters
• https://press.aboutamazon.com/news-releases/news-release-details/amazon-stops-multiple-fraudulent-affiliate-marketing-schemes

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210316006003/en/

FAQ

What was Michael Chaves sentenced for regarding Amazon?

Michael Chaves was sentenced to 30 months in prison for operating a fraudulent product return scheme that defrauded Amazon of over $50,000.

How does Amazon handle fraudulent activities?

Amazon has systems in place to proactively detect and stop suspicious behavior and prohibits fraudulent activities to protect its customers and sellers.

When was the sentencing of Michael Chaves?

The sentencing of Michael Chaves took place on March 12.

What charges were included in Michael Chaves' case against Amazon?

Chaves faced multiple charges, including bank fraud, wire fraud, aggravated identity theft, and tax evasion, along with the fraudulent return scheme.