Uncovering the Scam

Our forensic accounting investigation revealed a quasi “boiler room operation” to defraud consumers by presenting a “risk free” skincare trial offer wherein consumers provided credit card information to cover shipping and handling fees. However, unbeknownst to the consumers, their credit cards were subsequently and routinely charged for unwanted products. The fraud included a highly sophisticated scheme involving:

  • 30+ merchant credit accounts;
  • 100+ aliases;
  • Credit card chargeback procedures;
  • 30+shell companies; 
  • 60+ bank accounts; and
  • Procedures to move monies from the defendants’ operations to personal bank accounts.

In all, our forensic investigation identified over $20 million dollars in profits, with the defendants’ entities eluding payment of associated taxes.