A University of Miami student, Matthew Bergwall, has been charged in a massive $3.5 million fraud scheme. The 21-year-old, also known as MXB, allegedly conspired to commit computer and mail fraud, as well as substantive mail fraud.
According to the U.S. Attorney’s Office, Bergwall gained unauthorized access to compromised employee accounts of a multinational shipping, receiving, and supply chain management company from December 2021 until April 2022. Alongside his co-conspirators, he used these accounts to input fraudulent tracking information for merchandise being transported by the company.
This allowed the co-conspirators to request full refunds from victim-retailers while still possessing the physical merchandise, consisting of high-end electronics, jewelry, designer clothing, and accessories. The fraudulent service known as FTID (Fraudulent Tracking ID) was offered for sale by Bergwall and his partners, leading to nearly 10,000 fraudulent returns and causing victim-retailers to suffer losses of at least $3.5 million in product and sales revenue.
But Bergwall didn’t stop there—he also took advantage of the scheme for personal gain. He purchased various items for himself and then submitted fraudulent tracking information to the company, resulting in full refunds from victim-retailers. Among his ill-gotten gains were a $41,000 Rolex President Day-Date watch, a $600 TeamGee H2O Electric Skateboard, a $350 Samsung 43-inch Smart UHD TV, and an $80 pair of Reebok shoes.
Bergwall made his initial appearance in a Miami courtroom on Thursday, where he faced charges that could potentially lead to a maximum penalty of 45 years in federal prison. The indictment against him also includes a notification that the United States seeks an order of forfeiture equivalent to the proceeds of his criminal activities.
This case highlights the serious consequences of engaging in fraudulent schemes and the impact they can have on both businesses and consumers. The justice system remains steadfast in its commitment to identifying and holding accountable those who seek to exploit and defraud others. As the investigation continues, authorities will work to ensure that justice is served and that victims are properly compensated for their losses.
