Southern California man to plead guilty in $1.3 million Amazon payments scam – San Bernardino Sun

LOS ANGELES — An vendor from Hacienda Heights will plead guilty to bilking the online retailer out of more than $1.3 million by manipulating the company’s payment system, federal prosecutors said Monday.

Ting Hong Yeung, 41, has agreed to plead guilty to a federal wire fraud charge on a date to be determined, according to his plea agreement.

Federal prosecutors outlined an alleged scheme in which Yeung allegedly gamed the Amazon payment system, resulting in him receiving payment for merchandise he listed for sale but never actually shipped to buyers.

According to the Department of Justice, Amazon disburses payments to third-party merchandise sellers roughly every two weeks, after the sellers provide shipping numbers to prove that merchandise was actually shipped to customers.

Prosecutors claim Yeung would list expensive merchandise at low-ball prices to drive up sales. But instead of shipping purchased items to customers, Yeung 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 customers’ money from Amazon, according to the DOJ.

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