Online Selling Fraud with a Tax Evasion Side


Selling ill-gotten goods online is never a wise move, and trying to hide the proceeds from the IRS only makes matters worse.

The government said a company executive assistant purchased unauthorized supplies from Staples and billed her employer for them, “intentionally attributing the fraudulent purchases to 23 different cost centers so that everyone was less likely to notice fraudulent charges “.

The Justice Department says she resold the items on eBay. In addition to this, it is said that she used her employer’s Federal Express account “to ship fraudulently purchased items to her buyers.”

She is accused of costing the company $ 864,441.11 between January 2013 and December 2016 and of receiving at least $ 571,725.61 from the resale of the items allegedly fraudulently obtained.

Here’s where it got even more interesting, according to the DOJ press release:

“Martin did not provide her personal accountant with any information regarding online sales until she received a supplemental income notice from the IRS. At that point, she provided her accountant with false information. regarding the cost of goods sold and other expenses she did not incur in order to significantly reduce her income tax. Based on this false information, her accountant then prepared a false and fraudulent amended tax return of 2014 that has been filed with the IRS.

The case has been investigated by the IRS, the FBI and the US Postal Inspection Service. The press release from the Ministry of Justice, which can be viewed on this page on the website, states that the woman pleaded guilty and was sentenced to 33 months in federal prison followed by 3 years of supervised release for mail fraud and tax evasion.

Ina Steiner

Ina Steiner
Ina Steiner is co-founder and editor-in-chief of EcommerceBytes and has worked in e-commerce since 1999. She is a widely cited authority on market selling and is the author of “Turn eBay Data Into Dollars” (McGraw -Hill 2006). Her blog was featured in the book “Blogging Heroes” (Wiley 2008). Follow her on Twitter at @ecommercebytes and send tips to [email protected] See the disclosure at


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