Four brothers from New York are charged with defrauding Amazon out of $19m by overshipping and overcharging for wholesale orders. The U.S. Department of Justice announced the arrests of Yoel Abraham, Heshl Abraham, Zishe Abraham, and Shmuel Abraham last week. They each face a maximum of 50 years in prison.
- From 2017 to 2019, the brothers allegedly opened wholesale businesses and then exploited Amazon's vendor systems to overship more products than the company had agreed on. They invoiced Amazon for the extra products, netting $19m out of an attempted $32m.
- For example, Amazon agreed to buy 12 canisters of a disinfectant spray for $94 per pack, but the four men allegedly sent 7,000 toothbrushes for $94 each, invoicing the company ~$658,200.
- Amazon eventually detected the overshipping and suspended their vendor accounts. However, the brothers opened new accounts and used VPNs to hide their links to the old accounts, the DoJ claims.
- In WhatsApp messages, the brothers discussed the scheme, writing "I'm so in the mood to f--- Amazon" and "Did anyone try to overship and make a million profit in a week?"
- They each face charges of conspiracy to commit wire fraud, wire fraud, and money laundering.
Sellers on Amazon continue to face their share of fraud and other scams on the platform, with many facing lost investments from brands like Dynasty Toys.