Arkansas Man Sentenced for $257,000 Fraud Scheme, Barred from Entering Walmart Stores
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Smack Over, Ark., man was sentenced in federal court today for a $257,000 fraud scheme that involved switching bar codes on products at Wal-Mart stores then selling the products on eBay.
Carlton D. Newsome, 35, of Smack Over, was sentenced by U.S. District Judge Dean Whipple to 30 months in federal prison without parole. The court also ordered Newsome to pay $257,195 in restitution to Wal-Mart, and barred him from entering any Wal-Mart stores for three years after he is released from prison, while on supervised release.
On March 13, 2013, Newsome pleaded guilty to wire fraud. Newsome purchased embroidery machines from Wal-Mart stores in a dozen states between Dec. 28, 2004, and July 13, 2008. Newsome switched the bar codes from less expensive embroidery machines; for example, putting a bar code from a $78 machine on a $397 machine so that he could purchase the machine at the lower price. Newsome then sold the machines through eBay for several hundred dollars apiece.
This case was prosecuted by Assistant U.S. Attorneys William L. Meiners and Jess Michaelsen. It was investigated by the U.S. Secret Service and the Overland Park, Kan., Police Department.