East Providence Man Charged With Defrauding Amazon

EAST PROVIDENCE, RI — A former East Providence business owner, awaiting sentencing in federal court of more than $400,000 in fraud, was charged Wednesday with attempting to defraud Amazon.

The U.S. Attorney's Office said Michael Chaves, former owner of CAT Inc., is accused of stealing items from Amazon that he falsely claimed to have returned. Chaves is accused of ordering thousands of products from Amazon and returning different products with lesser value for full refunds.

Chaves was awaiting sentencing on fraud charges that he stole personal identification information, and used the stolen I.D. to operate his auto hauling business after being ordered to shut down due to safety violations.

According to court documents, Chaves held about 30 Amazon account under various names and email addresses over the course of three years. He is accused of placing approximately 10,795 orders for items totaling $713,970.78. He is accused of returning about 7,450 orders for $643,324.04. According to court documents, many of the items were returned in the original packaging, but Amazon's standard inspection process flagged about 149 of the items as potentially fraudulent with a value of $23,872.89.

According to court documents, the original items were found during a search warrant investigation into the fraud associated with his automobile transport company.

The U.S. Attorney's Office said the room searched contained the items included televisions, incense, European wall plugs (some for phone chargers), computer parts, small electronics and a significant quantity of auto parts.

Among the examples cited in court documents of purchases and fraudulent returns include Chaves having ordered a commercial truck tire and sending back two pieces of wood, ordering Apple Air Pods Pros and returning an unopened package of mini light bulbs, ordering a suspension joint and returning an oil filter, and ordering a stabilizer bar link kit and returning in its place doggie treats.

Chaves appeared today before U.S. District Court Magistrate Patricia A. Sullivan and was ordered detained in federal custody.

A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.