How did a UM student get a $41,000 Rolex? A $3.5 million scam, an indictment says
A federal indictment accuses a University of Miami student of coming up with a way to order and receive products ordered online, then claim refunds for the products, such as a $600 electric skateboard, a 43-inch Samsung TV and a $41,470 Rolex President Day-Date watch.
Coral Gables’ resident Matthew Bergwall, 21, also is accused of selling this have-your-fraud-cake-and-eat-it-too scheme.
The paperwork accusing Bergwall of mail fraud, conspiracy to commit mail fraud and conspiracy to commit computer fraud in pulling a $3.5 million scam was filed Oct. 25 in Tampa. It was unsealed Thursday, which is when Bergwall was scheduled to make his first appearance, in Miami. The online docket doesn’t list Bergwall’s attorney.
A LinkedIn profile of a “Matthew Bergwall” claims he’s a “serial entrepreneur” and “venture capital catalyst” now in UM’s Herbert Business School.
The indictment doesn’t name the company Bergwall allegedly hit, but describes it as a “private mulltinational shipping, receiving, and supply chain management company” that “serves as a common carrier for hundreds of retailers all over the world.”
As for the alleged scheme, the indictment says Bergwall and cronies in Central Florida or the west coast of Florida would order goods, get them, then they would hack into employee accounts and enter fake tracking information that made it appear as if the shipper had returned the items.
“This allowed Bergwall and co-conspirators....to pursue full refunds from victim-retailers while maintaining physical possession of the merchandise, such as high-end electronics, jewelry and designer clothing and accessories,” the indictment said. “Bergwall offered this service for sale, which was marketed as “FTID” (Fradulent Tracking ID).
“The FTID fraud scheme caused nearly 10,000 fraudulent returns and resulted in more than $3.5 million in lose product and sales revenue to the victim-retailers.”
They would use the employee accounts, the indictment said, enter fake information into the tracking “Making it appear as if merchandise purchased by Bergwall and co-conspirators had been returned by the Victim Company, prompting victim-retailers to issue refunds.”
Homeland Security Investigations Tampa office investigated the case with help from the Miami office. Assistant United States Attorney Carlton C. Gammons will prosecute the case.
