US authorities have sentenced a California resident to four years in jail for defrauding American Express of nearly $4.7 million and laundering the illicit proceeds.
During 2017-19, the 45-year-old convict used four business entities that he owned and 10 American Express credit cards issued in the name of these entities to purchase a large number of Apple iPhones. The convict sold these iPhones overseas for millions of dollars. He also falsely claimed to be unable to repay nearly $4.7 million to American Express for the purchase of the iPhones. He even created fake payment invoices to obtain additional credit from American Express.
The convict directed the illicit proceeds towards personal expenses, including the purchase of a $1.3 million home and a luxury vehicle. As per the court order, he will have to pay $4,651,845.08 in restitution and forfeit another $3,018,602.22.
Source: US Department of Justice
