A 21-year-old University of Miami student has been charged by the U.S. Department of Justice for his alleged involvement in a fraud scheme that left retailers all over the country out of millions of dollars.
Matthew Frederic Bergwall of Coral Gables was charged with conspiracy to commit computer and mail fraud, as well as substantive mail fraud, the Department of Justice said in a news release Thursday.
Bergwall allegedly hacked into the compromised employee accounts of an unnamed multi-national shipping, receiving and supply chain management company.
Bergwall and his co-conspirators used these accounts to enter fraudulent tracking information for merchandise transported by the company on behalf of retailers located all over the country, according to a release from U.S. Attorney Roger B. Handberg.
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This reportedly allowed the co-conspirators to pursue full refunds from victim retailers while still possessing the merchandise, which included high-end electronics, jewelry, designer clothing, and accessories.
Federal investigators said Bergwall fraudulently obtained a $41,000 Rolex watch, a $600 electric skateboard, a $350 Samsung smart TV and $80 Reebok shoes, among other items.
“Bergwall offered this service for sale, which was marketed as 'FTID' (fraudulent tracking ID)," the 11-page indictment states. "The FTID fraud scheme caused nearly 10,000 fraudulent returns and resulted in more than $3.5 million in lost product and sales revenue to the victim-retailers.”
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Investigators say the scheme went on until at least April 2022. A spokesperson for UM said Bergwall has not been a student at the university since Spring 2023.
If convicted on all counts, Bergwall could face up to 45 years in federal prison. The co-conspirators described in the indicted have not been named.
Bergwall was reportedly set to make his initial court appearance Thursday in Miami.
