Darien College Student Charged In $3.5M Shipping Fraud Scheme: Report

DARIEN, CT — A University of Miami student from Darien, according to Darien Times, was arrested and charged in connection with a nationwide, $3.5 million fraud scheme against a multi-national shipping, receiving, and supply chain management company.

Matthew Frederic Bergwall, 21, of Coral Gables, Fla., was recently charged with conspiracy to commit computer and mail fraud, and substantive mail fraud.

According to an indictment, from December 2021 until April 2022, Bergwall gained unauthorized access to compromised employee accounts of a multi-national shipping, receiving, and supply chain management company, a news release said from the United States Attorney's Office - Middle District of Florida.

Prosecutors said Bergwall and his co-conspirators used these accounts to enter fraudulent tracking information for merchandise transported by the shipping company on behalf of victim retailers located all over the country.

"This allowed the co-conspirators to pursue full refunds from victim-retailers while maintaining physical possession of the merchandise, such as high-end electronics, jewelry, designer clothing, and accessories," prosecutors said.

Bergwall and his co-conspirators offered this service for sale, which was marketed as "FTID" (Fraudulent Tracking ID), prosecutors noted.

"Bergwall’s FTID fraud scheme caused nearly 10,000 fraudulent returns and resulted in at least $3.5 million in lost product and sales revenue to victim retailers," prosecutors said.

In addition to orchestrating the overall FTID fraud scheme, Bergwall purchased merchandise for himself and later submitted fraudulent tracking information to the shipping company, prompting full refunds from victim retailers, according to prosecutors.

Over the course of the fraud, prosecutors say Bergwall bought a $41,000 Rolex President Day-Date watch, a $600 TeamGee H2O Electric Skateboard, a $350 Samsung 43-inch Smart TV, and an $80 pair of Reebok shoes.

If convicted on all counts, Bergwall faces a maximum sentence of 45 years in federal prison, prosecutors said.

Patch has reached out to the United States Attorney's Office - Middle District of Florida for more information.

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