Former Internet vendor convicted of scheme to defraud customers of $5M
Daniel Greenberg, the president and owner of Classic Closeouts, LLC, a now-defunct Internet seller of discounted clothing and personal items, was convicted Monday by a federal jury on all 13 counts for defrauding thousands of customers through unauthorized use of the credit and debit card numbers they had provided in connection with purchases at an earlier time.
The evidence at trial established that from approximately June 2008 through at least April 2009, Greenberg charged victims’ credit cards or debited their bank accounts on more than 60,000 occasions, without the victims’ authorization and without the victims purchasing merchandise.
Greenberg used credit and debit card information retained by Classic Closeouts from earlier purchases and then fraudulently charged their credit or debit cards, often charging the same card multiple times over the course of several weeks and months.