SACRAMENTO - Three individuals, along with Monica Nunes, 40, of formerly of Rancho Cordova, pleaded guilty Thursday to conspiracy to commit bank fraud, U.S. Attorney McGregor W. Scott announced. According to court documents, Nunes and her co-defendants, Johnathon Ward and Talalima Toilolo, conspired to defraud financial institutions using a scheme called “refund fraud” or “force post refund fraud.”
This scheme exploited the merchant refund process used by businesses and retail establishments to pay back customers for returns, reimbursements, and erroneous charges. The defendants posed as merchants and executed fraudulent debit or credit card refunds, which caused the unauthorized transfer of money from a merchant bank account to an account under the defendants’ control.