Malik Strodder, age 25, of Flint, Michigan, was sentenced to 21 months in federal prison, and Dondrell Smith, age 25, of Mount Morris, Michigan, was sentenced to 35 months in federal prison for their roles in a scheme to defraud Walmart using fraudulent cash cards to obtain merchandise which they then subsequently returned for cash. U.S. District Court Judge Brian A. Jackson further sentenced both to serve three years of supervised release following their terms of imprisonment. Strodder was ordered to pay $180,676.53, and Smith was ordered to pay $167,802.52 in restitution.
According to court records, Strodder and Smith executed a nationwide scheme targeting Walmart stores. Using fraudulent “cash cards,” they attempted to purchase high-value items knowing the cards would decline. They then falsely claimed to be former Walmart employees and instructed cashiers to enter manual codes to process the transactions as cash payments – allowing them to get the items for free. They then used the resulting receipts to return the stolen merchandise for cash refunds at other Walmart locations. The scheme spanned more than 101 Walmart locations in more than 15 states, with an intended loss of over $340,000.
The scheme included fraudulent activity in which Strodder and Smith conducted seven fraudulent transactions at Walmart in Gonzales, Louisiana, stealing more than $6,500 in merchandise and returning the items for cash the next day at Walmart stores in and around Broussard, Louisiana.
At sentencing, Strodder admitted that he spent the proceeds on luxury clothing and vehicles, which he later wrecked and totaled.
U.S. Attorney Kurt L. Wall praised the work of the Department of Homeland Security Investigations and the Gonzales Police Department. This case was prosecuted by Assistant U.S. Attorneys Mallory Richard and Jessica M.P. Thornhill, who also serves as a Deputy Chief in the Criminal Division.
Source: U.S. Attorney’s Office — Middle District of Louisiana — U.S. Department of Justice press release.