Brothers plead guilty to $1.4M theft from Nordstrom
Apr 9, 2012, 2:20 PM | Updated: 3:29 pm
Two brothers have pleaded guilty to stealing more than
$1.4 million from a Seattle-based upscale department store
chain.
Andrew S. Chiu, 29, of Anaheim, Calif., and Allen J. Chiu,
37, of Dallas could face up to 30 months in prison under
the terms of a plea agreement.
According to court records, the Chiu brothers exploited a
computer programming error which allowed them to collect
cash rewards on more than $23 million in fraudulent orders
they placed on Nordstrom.com between Jan. 2010 and Oct.
2011.
Although the merchandise did not ship and charges were not
made to their credit cards, the brothers still obtained
cash rewards as members of a shopping community website
called FatWallet.com.
When Nordstrom notified authorities of the fraud, the U.S.
Attorney’s Office was able to seize more than $970,000 in
illegally derived assets that will be returned to the
company.
The Chiu bothers will be sentenced in U.S District Court
in Seattle on July 13.
