Second defendant charged in fraudulent refund scheme targeting online retailers

Seattle – A 29- year-old Wilkes-Barre, Pennsylvania man pleaded guilty today in U.S. District Court in Seattle to wire fraud and money laundering crimes related to his operation of a fraudulent online shopping refund scheme, announced U.S. Attorney Tessa M. Gorman. Leonardo Vidal faces up to 20 years in prison when sentenced by U.S. District Judge Robert S. Lasnik on November 7, 2024.

According to the charging information and the plea agreement, Vidal operated his own fraudulent refunding fraud scheme from June 2021 until April 2023 called Ressu Refunds. The scheme amassed 2,800 subscribers and obtained $6 million in fraudulent refunds for followers. Beginning in June 2022, Vidal conspired with 25-year-old Dearborn, Michigan, man Sajed Al-Maarej who operated a different refund site called “Simple Refunds.” As with the Ressu refund site, Simple Refunds operated through the messaging service Telegram.

As explained in the charging information and the indictment of Al-Maarej, the Telegram channels represented to prospective purchasers that they could buy high value goods and keep them, while falsely claiming to the merchant company that a refund was due. Purchasers provided Al-Maarej and Vidal with information about their purchase (order number, name, address, value). For a cut of the refund, Al-Maarej, Vidal and their coconspirators would seek a refund by making false representations to the retailers about the status of the order. For example, Simple Refunds or Ressu Refunds would claim the item had not been delivered; was irretrievably damaged; or would have the purchaser mail a box of garbage or junk back to the company – once the package was scanned at the shipping point the refund was issued before the box arrived back and the fraud was discovered. The men recruited “insiders” at UPS and the US Postal Service who would input false scans into the order tracking history to make it appear items had been lost in shipping, stolen from the mail, or returned to the company. The end goal was for the purchaser to keep the product and get their money back. The purchaser then paid Al-Maarej or Vidal 10-15% of the purchase price as a fee, enabling Al-Maarej and Vidal to enrich themselves.

In December 2022, Vidal acquired Simple Refunds from Al-Maarej. Vidal sold Ressu Refunds and Simple Refunds to a different Telegram user in April 2023.  During the time that Vidal operated Simple Refunds it was responsible for $726,414 worth of fraudulent refunds and Vidal profited $87,000.

During just 8 months from May 2022 through December 2022—Ressu Refunds facilitated more than 3,000 fraudulent refunds worth at least $5.3 million. Vidal obtained at least $640,000 from this fraud. 

The total value of the fraudulent refunds through Simple Refunds and Ressu Refunds while Vidal was running them is $6,067,168. Vidal has agreed to pay restitution of that amount.

Wire fraud and money laundering are punishable by up to 20 years in prison. Prosecutors have agreed to recommend no more than 87 months in prison for Vidal. The actual sentence will be determined by Judge Lasnik after considering sentencing guidelines and other factors.

On July 15, 2024, Al-Maarej pleaded guilty to conspiracy, mail fraud and wire fraud. He too is scheduled to be sentenced on November 7, 2024.

The investigation is open and ongoing with the possibility of additional charges against other defendants.

The case is being investigated by the FBI and the United States Postal Inspection Service (USPIS). The case is being prosecuted by Assistant United States Attorney Lauren Watts Staniar.