Georgia man pleads guilty to defrauding Staples

Grant Welker Layne Michael Gosnell profited more than $1.4 million by defrauding Staples' rewards program.

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By Zachary Comeau

A Georgia man has pleaded guilty to defrauding Framingham-based Staples and profiting more than $1.4 million.

Layne Michael Gosnell, 46, of Georgia, pleaded guilty in a Boston federal court Friday to one count of conspiracy to commit wire fraud and mail fraud.

He pleaded guilty on Sept. 26, but the court held another plea hearing after it was determined Gosnell tested positive for alcohol above the state’s legal limit, the U.S. Attorney’s office said in a press release Friday.

It is alleged Gosnell, co-defendant John Douglas and others engaged in a complex scheme involving creating more than 1,100 Staples reward accounts using fake information and used a computer script to seek unclaimed customer loyalty rewards for purchases neither man made.

The script made thousands of queries a day, amassing more than $889,000 worth of rewards, many of which were less than $1 at a time. Gosnell and Douglas then used the rewards as cash to buy merchandize at Staples location along the East Coast. Gosnell then sold his merchandise on eBay, the U.S. Attorney’s office said.

The pair used a similar method to claim more than $527,000 in cash rebates from Staples for products neither purchased.

Douglas was sentenced last month to 30 months in prison, $691,327 in restitution and $553,061 in forfeiture.

Gosnell faces a prison term of up to 20 years, three years of supervised release and a fine of at least $250,000.