The parts manager for a multi-state business, John Cox, was sentenced to 36 months in prison for wire fraud, filing a false tax return and failing to file a tax return.
From 2018 to 2020 Cox ordered parts and products that the business did not need, using his employer’s funds, in order to sell them on eBay. The parts included HVAC units and LED light display kits.
Cox arranged payments for the stolen parts via PayPal and failed to disclose to potential buyers that the products were stolen, which is a violation of eBay’s user agreement.
He sold approximately 400 stolen items on eBay, costing his employer $431,557.61.
Cox failed to report any of the income from the stolen goods on his 2018 tax return, and did not file returns for 2019 and 2020.
The tax loss to the IRS was $106,690.