ALEXANDRIA, Va. – A McLean man was sentenced Thursday to one year and nine months in federal prison for orchestrating a mail fraud scheme that defrauded a luxury retailer and a credit card company of more than $1.2 million through fraudulent chargebacks and false identities.
According to the U.S. Attorney’s Office for the Eastern District of Virginia, 45-year-old Jaivin Raj Karnani used multiple American Express accounts between November 2022 and June 2024 to purchase high-end watches and accessories from Harrods Limited, the London-based luxury department store. Prosecutors said Karnani placed orders under his own name and the aliases “Quinn Bash” and “Steve Johnson.”
Once the luxury items arrived, Karnani would initiate disputes with American Express, falsely claiming the transactions were unauthorized or fraudulent to have the charges removed. He then sold or attempted to sell the watches to dealers in Michigan and New York.
U.S. Attorney Lindsey Halligan said Karnani’s conduct exploited consumer-protection systems intended to safeguard legitimate customers. “This case demonstrates how the abuse of consumer-protection systems inflicts widespread financial harm – driving up costs, eroding trust, and burdening honest businesses,” Halligan said. “The Eastern District of Virginia will hold accountable anyone who exploits these safeguards to enrich themselves at others’ expense.”
Prosecutors said the scheme caused actual losses of $851,328.75 to American Express and $426,794.24 to Harrods, while Karnani attempted to erase $1,280,647.99 in total charges. He also misused the chargeback process to reverse legal fees he owed to his own attorneys, later resulting in civil judgments against him.
In addition to his prison term, Karnani was ordered to forfeit $1,280,647.99 and 23 luxury watches seized from his McLean residence, including models from Rolex, Omega, Chanel, Gucci, Tissot, and Chopard.
A McLean man received nearly two years in federal prison for a $1.2 million mail fraud scheme involving luxury watches purchased under false identities and disputed through fraudulent chargebacks.