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FBI Busts The Biggest Counterfeit Coupon Ring Ever

Source: http://www.businessinsider.com/massive-counterfeit-coupon-ring-busted-in-arizona-2012-7

Early Tuesday morning, federal officials raided four Phoenix, Ariz. properties, seized 21 cars and arrested three women accused of running the largest counterfeit coupon ring in the country. 

The mission involved a joint effort by the FBI, local police, and a roster of manufacturing giants that included Procter & Gamble, PepsiCo and Hershey, which were among dozens affected by the scheme, according to industry watchdog Coupon Information Corp.

During the bust, police uncovered more than $25 million worth of bogus coupons and confiscated 22 assault weapons, along with a 40-foot boat, local law enforcement told CBS 5.

“These aren’t ’50 cent off’ coupons. These are ‘free item’ coupons,” Police Sergeant Dave Lake said. “For Iams, you get this coupon from her for $10 and you can get a $70 item…If you can get an unlimited number of those, think how this grows.”

Unraveling the scheme

There’s no telling how badly businesses were burned, but police estimate they’ve lost hundreds of millions of dollars. Here’s how manufactures helped tip investigators off to the fraud, according to AZ Central:

“Police said approximately four years ago high-quality copies of manufacturer’s coupons began surfacing in the United States from an unknown source. The victim companies teamed with Coupon Information Corp. and hired private investigators to find where the coupons were being sold in the country. The investigators found several market re-entry points, with the most prolific one located in Arizona.” 

That’s where Robin Ramirez, 46, Amico Fountain, 42, and Marilyn Johnson, 62, allegedly ran the bulk of their business, using a fake website and eBay to sell consumers fraudulent coupons at a deeply discounted rate.

How the plan worked

In order to receive the free or discounted coupons, users were “invited” to join the site and given a 100 percent guaranteed return if the deals were rejected at the point of sale.

“They were selling millions of dollars worth of coupons on (eBay) in addition to SavvyShoppersite.com,” CIC Executive Director Bud Miller told AZ Central.

The website domain may sound familiar. “Savvy Shopper” magazine sends out real coupons to consumers each week, but officials say the scammers simply borrowed the brand to make their scheme seem more legitimate. 

While none of the consumers who purchased the coupons will face charges, counterfeit coupons could easily land the people and businesses that unwittingly purchase them in hot water.

“Coupon buyers expose themselves to the possibility of becoming involved with counterfeits, stolen property or other criminal activities,” Miller said in a statement. “They may also expose themselves to additional risk by providing their names, home addresses and financial information to organized crime rings.”

The key to avoiding counterfeit coupons is simple: Don’t buy them. 

Here are some other tips CIC passes along to consumers:

-Beware of invalid disclaimers, such as “You not paying for the coupons, but for the time and effort it took to clip them.”
-Be wary of any coupon emailed to you by anyone but the manufacturer or its authorized distributor
-If a coupon is visible on a computer screen, it is probably counterfeit
-Free product coupons are seldom, if ever, distributed on the Internet.

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