PHILADELPHIA – A Coatesville, PA man was charged today in connection with a scheme to over-redeem gift cards, U.S. Attorney William M. McSwain announced.
Chad Douglas Broudy, 23, was charged by criminal information with wire fraud.
The information alleges Broudy defrauded an internet e-commerce company by exploiting a software glitch that permitted repeated uses of the same gift card. The information alleges that between October 29, 2016, and January 10, 2017, Broudy intentionally conducted approximately 1100 fraudulent transactions triggering this glitch, and in the process over-redeemed approximately $320,582 from the company’s gift cards.
“The defendant had a choice. He could have reported the glitch. But he chose greed and crime over honesty. He took full advantage of the glitch and exploited it not once or twice, but more than 1100 times, obtaining more than 3,000 items through fraud.”
If convicted the defendant faces a maximum possible sentence of 40 years imprisonment, 3 years of supervised release, a fine of $500,000, and full restitution.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
Department of Justice
Office of the U.S. Attorney
Eastern District of Pennsylvania