[Boatanchors] Fraud Question

Fri Sep 23 19:58:51 EDT 2005

Hello,

Since the topic of problems encountered buying boatanchors from strangers 
has arisen, I thought I'd pitch in my 2¢ worth as I have had some related 
professional experience that may be of some value to the group.  First 
though, I need to tell you all that am not a lawyer and I'm not authorized 
to advise anybody on the law, but I am a retired criminal investigator, 
formerly with a U.S. Treasury law enforcement agency where I specialized in 
fraud investigations, so know I'm relating my experiences as I recall them 
before I retired.  I also had significant direct experience with postal law 
violations and worked jointly with the U.S. Postal Inspection Service on 
numerous occasions over my 22 year career, so I know a bit about this 
subject too.

Based on my experience, in general terms, if any part of the transaction 
takes place via the U.S. Postal Service (USPS), then it falls under Title 
18 of the U.S. Code (federal criminal statutes) and USPS regulations, 
particularly with regard to fraudulent activity.  To cite one example as I 
recall it, if you buy something through the mail, the seller is obligated 
to send the item within a certain period (as I recall, 30 days), or inform 
you if it cannot be shipped within the specified time and give you the 
opportunity to either extend the time or cancel your purchase for a full 
refund.  There are many regulations governing mail order sales, so I 
recommend consulting with the Postal Inspectors to see what may apply to 
your situation and if there's something substantiative, make a complaint, 
even though it may not get your problem resolved.  I'll explain why that's 
important.

Understand that all law enforcement agencies have limited resources, so 
they have to apportion them to the worst cases first and work their way 
down.  As you might surmise, a couple of hundred dollars or so in an 
allegedly fraudulent loss demands a pretty low priority, so they'll file 
your report and that may be the last you ever hear of it.  However, this 
might be the tip of the iceberg and you may be one of literally hundreds of 
other people who've been ripped off by that person.  If nobody complains 
though, there won't be a common thread for them to associate and the 
criminal will go on and on with their evil scheme for years and years 
without ever getting caught.

I'll give you an example of a specific case I investigated in Texas a few 
years before I retired.  There was a woman in San Antonio who complained 
about a fraudulent charge on her American Express card, explaining that she 
only used that card to buy gasoline at a particular station, so it seemed 
apparent that whoever had stolen the card number had to have had access to 
the merchant's sales records.  The circumstances alerted me to a similar 
complaint that led to another, and another, etc. and before it was over, I 
had discovered literally hundreds of similar fraudulent charges all over 
the area.

It turned out that there were two sisters who got cashier jobs in various 
retail stores and service stations throughout the area strictly for the 
purpose of harvesting valid credit card numbers.  They made one purchase 
with each number, so since credit card companies will routinely credit 
questionable charges, as American Express did with the initial complaint, 
practically none of the victims ever complained.  I'm sure that other than 
the few who complained, the victims thought that since they weren't out 
anything that it wasn't worth taking the time to make a complaint.

The sisters therefore got away with it for about three years with a fraud 
amounting to a total of over a quarter million dollars.  They were both 
convicted though and even though those were their first offenses, the 
amount they had stolen was so large, they both received prison sentences.

My point is that if that woman hadn't reported that unauthorized charge and 
given us enough key information to eventually tie the sisters into the rest 
of the fraudulent charges, we may have never caught them and gone on 
ripping off dozens more merchants.  So, if you have a problem with a mail 
order purchase, particularly from another state, and the seller appears to 
be deliberately ripping you off, as opposed to him being a dimwit as 
there's no law against being stupid and/or lazy, call the Postal Inspectors 
and/or a federal prosecutor in your local U.S. Attorney's office and 
explain the circumstances.  If they consider it appropriate that you make a 
complaint, particularly in the case of the federal prosecutor suggesting 
that you do, then seriously consider doing so.

One more thing.  Don't count on getting any results from calling the local 
cops in the seller's home town.  They're aware that if they were to pursue 
prosecution that it's highly unlikely that you will travel to wherever it 
is to testify against the perpetrator at your own expense, so they know 
with a high degree of certainty that they'll be wasting their time.  They 
have better things to do that to go on wild goose chases.

I guess the best advice is "caveat emptor," let the buyer beware.  Make 
sure you have a clear understanding with the seller (or buyer) and protect 
yourself.  Prepare for the worst and enjoy being pleasantly surprised when 
it works out.

(And apologies for my verbosity.)

73,
Tony
K4KYO

At 9/23/2005 04:51 PM, you wrote:
 >Hello,
 >
 >I used to think that I was protected if I paid for my goodies with
 >a USPS Money Order.  However, I have read/heard that the USPS will take
 >little action on a complaint, unless a high dollar figure is involved,
 >or the seller has multiple complaints against him; and in any event,
 >rarely do you get any money back.
 >
 >Is there anyone on the list who has had an actual experience with the
 >USPS regarding a complaint, pro or con, that they could tell us about?
 >Has anyone actually gotten their money back?
 >
 >73, Bruce WA8TNC
 >=================
 >J. Forster wrote:
 >
 >> Had I purchased those two on eBay, I would have filed Mail Fraud
 >> complaints with USPS and gotten the money back.
 >> FWIW,
 >> -John
 >
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