A Manteca man pleaded guilty to wire fraud through a gift card scheme that totaled $1.4 million, acting US Attorney Michele Beckwith announced.
Justin Payne, 50, worked as an IT director for a family-owned business in Modesto. Payne used his company-issued credit card to buy gift cards from multiple places which he then sold to online businesses to convert them into cash. According to prosecutors, Payne carried out 3,700 of these transactions with online businesses that specialize in buying unwanted gift cards for less than their value.
Payne also used the company’s credit card to make unauthorized purchases of personal items, including, but not limited to, adult and children’s clothing, golf and other sports equipment, and home improvement purchases, prosecutors said.
To cover up his scheme, Payne hid the transactions from his employer by altering receipts and falsifying expense reports, making it look like his purchases were for IT equipment for the company.
During his employment, Payne embezzled more than $1.4 million dollars from the company, the US Department of Justice said.
Payne is scheduled to be sentenced on Oct. 16 and is facing up to 20 years in prison and a fine of $250,000.
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