Ypsilanti Man Sentenced to Fifty Months in Prison for Online Refund Scheme

DETROIT – Mubasher Riaz, of Ypsilanti, Michigan, was sentenced last week by the Honorable Matthew F. Leitman to 50 months in prison for conspiracy to commit wire fraud, announced United States Attorney Jerome F. Gorgon Jr.

Gorgon was joined in the announcement by Jennifer Runyan, Special Agent in Charge of the Detroit Field Division of the Federal Bureau of Investigation (FBI).

Earlier this year, Defendants Mubasher Riaz and his brother, Muzzammil Riaz, were charged with conspiracy to commit wire fraud. The brothers purchased online goods using fraudulent identities, virtual private networks, different electronic devices, and other means intended to avoid fraud detection by online vendors. The defendants purchased goods from hundreds of vendors, including cell phones, tablets, electronic doorbells, and clothing. After receiving the purchased goods, defendants submitted refund claims, falsely claiming the purchased goods were defective. Despite submitting a refund, the defendants did not return the purchased goods. Instead, the defendants shipped back an empty box, a counterfeit item, or alternative item such as a book that matched the expected shipment weight of the return. Mubasher Riaz would then resell the unlawfully obtained goods for profit.

FBI agents uncovered the scheme while executing a search warrant at the home of Mubasher Riaz in November 2023. At the time, Mubasher was under investigation for sexual exploitation of children. In connection with that case, Mubasher Riaz was sentenced to 188 months in prison earlier this year by the Honorable Sean F. Cox. A portion of Riaz’s fraud proceeds are being used to pay restitution to the minor victims in that case.

Agents found evidence of fraud in plain view in the Riaz home, including over 40 cell phones and 30 tablets that were individually labeled with the personal identifying information of different identities used for the fraud scheme. Riaz moved proceeds he acquired from his fraud scheme into cryptocurrency, which FBI agents ultimately recovered and liquidated. As part of Riaz’s sentence, he forfeited $400,000.00 of the liquidated fraud proceeds and forfeited 91 electronic devices as proceeds traceable to his fraud scheme. Riaz will also be ordered to repay his victims. A restitution hearing has been scheduled for February 4, 2026.

The FBI believes many possible victims of the scheme exist. Potential victims are encouraged to contact the Federal Bureau of Investigation at fbi.gov/mubasherriazvictims (Please note that the link to the website is case sensitive).

This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Zachary Zurek, with Assistant United States Attorney Kelly Fasbinder handling forfeiture matters.