Michael Awad, a former resident of Detroit, was sentenced today to 27 months in prison after having pleaded guilty to mail fraud in a scheme to defraud buyers of precious metals and coins via the Internet, Acting United States Attorney Terrence Berg announced today.

Mr. Berg was joined in the announcement by Special Agent in Charge Andrew Arena, Federal Bureau of Investigation and Postal Inspector in Charge Joseph Parone, U.S. Postal Inspection Service.

Awad, age 50, was sentenced by United States District Judge Lawrence Zatkoff in Port Huron, Michigan.

Information presented to the court at the time of the plea hearing showed that from 2005 until 2007, Awad—while using his sister’s name—defrauded buyers of precious metals and coins who wished to buy such items from him over the Internet. The buyers were bidders at Internet sales of gold coins, platinum bars, platinum coins, and similar items conducted on the Yahoo Auctions website or via e-mail. Although Awad (posing as his sister) required prepayment from the buyers for the items, he refused to ship the purchases, falsely claiming that: (a) the traffic congestion and logistical difficulties caused by the Super Bowl in Detroit, (b) various family emergencies, including the alleged death of relatives, (c) the need to obtain the precious metals from a family storage vault located in Ann Arbor, (d) assorted work related conflicts, and (e) personal sickness, and other false representations and half-truths. Ultimately, Awad defrauded more than 10 victims of around $150,000.

Acting United States Attorney Berg said, “Internet is largely unregulated, but can be easily exploited based upon the trust buyer places in the seller who is really unknown. When an unscrupulous Internet merchant takes criminal advantage of that trust, this office has the tools and expertise to step in and ensure that prosecution takes place. Today's sentence signals my office's commitment to go after those criminals who would exploit the trust of innocent buyers on the Internet."

The case was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service.