The scheme involved creating 1,100 fake customer loyalty accounts, and would have cost Staples $1.4 million (€1.2 million).
WSB Radio reported that John Douglas pleaded guilty for “conspiracy to commit mail and wire fraud”, and faces up to 20 years in jail while his wife, Analyn, has agreed to “deferred prosecution”, and if she does not break the terms of the agreement in the next year will have all charges against her dropped.
The prosecutors described the scheme as “complex” as Douglas had faked more than 1,100 fake customers for loyalty accounts using fake “names, addresses and phone numbers”. He then created a computer programme to contact the Staples website, so that loyalty rewards could be claimed.
The US Attorney’s office said in a statement that “the computer script made thousands of queries a day, amassing more than $889,000 (€823,480)worth of rewards in small increments, often less than a dollar at a time”. Douglas and his wife then used the money to buy Staples products to sell on eBay and totalled unwarranted claims of $527,000 (€488,160). The scheme was discovered by Staples, who then reported it to the authorities.