San Jose: Man’s empty-box scheme cost Apple $1 million

A 25-year-old man who admitted in San Jose federal court that he ran an empty-box scheme that cost Apple $1 million in refunds is facing a maximum of 40 years in prison.

Van-Seyla Mork pleaded guilty to wire fraud and money laundering, the Department of Justice and the FBI announced Monday. Mork’s scheme, investigated by the FBI, worked like this: He complained to Apple on behalf of customers who supposedly received empty boxes of Apple products in the mail, although he knew the customers had actually received their products. Then he collected refunds issued by the company. He admitted he transferred the money refunded to various bank accounts to try to hide the fraud.

The empty-box scheme has long been used to defraud Amazon, sellers on eBay and others. On the other hand, some online shoppers really do receive empty packages.

Mork, of Kalamazoo, Michigan, was charged with one count of conspiracy to commit wire fraud, five counts of wire fraud, and four counts of money laundering. As part of a plea deal, he pleaded guilty to one count of wire fraud and one count of money laundering. Each count carries a maximum penalty of 20 years in prison, and he could be fined $250,000 for wire fraud and $500,000 for money laundering.