Covington man will be sentenced in March of next year for defrauding two
internet companies out of thousands of dollars.
Melvin Dietz, Jr., 39, will be sentenced on March 14, 2014 for
wire fraud and aggravated identity theft.
Dietz faces a mandatory two year sentence on the aggravated
identity theft count and maximum of 20 years on the wire fraud offense.
Dietz pleaded guilty on November 19 and admitted that on or about
January 2011 through December 2011, he devised a scheme to defraud two online
internet companies, WeBuyUsedCisco.com and Teksavers.com, both of which purchase
used Cisco computers and equipment.
Officials say Dietz used 14 different PayPal accounts with fake identities
to craft and execute his scheme.
before or after he created an account, he contacted one of these companies and
fraudulently offered to sell them certain Cisco items by misrepresenting that
he possessed them.
Through email, he used an alias identity and negotiated a price
with a representative of the company for the Cisco equipment.
At Dietz's direction, the company transferred payment to one of
the PayPal accounts that Dietz had set up using the same or a different alias
Thereafter, Dietz cut off communication and never sent the
Dietz acknowledged he used or attempted to use the money in his
PayPal accounts to purchase items online from various online retail businesses
or remove the money from his alias PayPal accounts in other ways.
The money transferred by WeBuyUsedCisco.com to Dietz's PayPal
accounts as a result of his fraud totaled approximately $21,846.25.
The amount of money transferred by Teksavers.com to Dietz's PayPal
accounts as a result of his fraud totaled approximately $50,240.
In committing this crime, Dietz knowingly used, without lawful
authority, a means of identification of another person, during and in relation
to the wire fraud count, in that he used that individual's social security
number to obtain a prepaid Visa card.
Dietz used the card to authenticate the account with PayPal for
the purpose of furthering his scheme to defraud Teksavers.com.
eBay Incorporated initiated the investigation with law enforcement
and fully cooperated with the FBI and the Covington, Ky., Police department who
prepared the case for prosecution.