A man from Ypsilanti, Michigan, has been sentenced to a substantial 50 months in prison for a wire fraud conspiracy involving a systematic online refund scam. Mubasher Riaz faced judgment last week from Judge Matthew F. Leitman, as announced by U.S. Attorney Jerome F. Gorgon Jr. Details of the sentencing suggest Riaz, along with his brother, Muzzammil Riaz, executed the sale of fraudulently obtained goods purchased under false identities, leveraging techniques to bypass detection of their scheme by various online vendors. The brothers next filed sham refund claims, claiming these items were defective and, instead of returning the purchased goods, engaged in deceptive practices by shipping back inconsequential items or nothing at all in their place.
In a report, Gorgon was also joined in the announcement by Jennifer Runyan, who heads the Detroit Field Division of the FBI. The complexity of the Riaz brothers' operations included the use of virtual private networks, assorted electronic devices, and a host of fraudulent identities. According to the U.S. Attorney's Office, their scheme targeted hundreds of online vendors, ensnaring a range of items from cell phones and tablets to clothing and electronic doorbells. The products, which were not returned as per claims, were later resold for profit, according to the statement from the Department of Justice.
The fraudulent activities came to light when FBI agents executed a search warrant at Mubasher Riaz's residence in November 2023. At the time, Riaz was already under investigation for a separate, more disturbing charge involving sexual exploitation of children. Riaz was sentenced earlier this year to 188 months in prison by the Honorable Sean F. Cox for the latter offenses. A portion of the proceeds from his fraud scheme is being used to pay restitution to the minor victims of that case.
FBI agents discovered direct evidence of the fraud, including an array of over 40 cell phones, 30 tablets, and the equivalent personal identifying information essential for their operations. Not only did Riaz convert his ill-gotten gains into cryptocurrency, but he was also compelled to forfeit $400,000.00 of the liquidated proceeds along with 91 electronic devices related to his illicit activities. What's more, a restitution hearing has been set for Riaz to compensate his victims, scheduled for February 4, 2026, as highlighted by the Department of Justice release.
The FBI believes that there could be numerous unreported victims impacted by the Riaz brothers' operations. Those who suspect they were affected by the scheme are encouraged to come forward and contact the Federal Bureau of Investigation at its dedicated website for potentially affected individuals.
