5 Snohomish County sisters accused of $1M fraud scheme

For two years, the women used online return postage to get gift cards, then returned the physical items to a brick-and-mortar store, charges say.

Marysville

MARYSVILLE — As five Snohomish County sisters shuffled at least $1 million in cash reaped through a long-running scam, they often filled in the “memo” line for their Zelle transfers, according to new federal charges.

“Your Cut.”

“Cut and Bags.”

“Dee cut.”

“Dee Cut From Today and Yesterday.”

This week, a federal grand jury indicted the five sisters for conspiracy to commit mail fraud and 24 counts of mail fraud each. They’re accused of taking advantage of exploitable online return policies at a “major active clothing retailer” over the past two years. The company is not identified in court papers, except that it has more than 700 locations around the world.

Four of the defendants, ages 25, 29, 32, 33, live in Marysville. One, age 27, resides in Stanwood. They were set to appear Thursday afternoon in U.S. District Court in Seattle, accused of carrying out the scheme by returning goods in Arizona, California, Colorado, Florida, Michigan, Nevada, Oregon and Washington.

The company had a fast-track return policy, where customers could send back merchandise in the mail and get refunds within two hours, up to three items at a time. The women would order “several purchases a week on average,” then scan the return label at a self-service counter in a post office, the charges say.

“As a result, (the company) issued refunds prior to receiving any actual returned merchandise,” according to the charges.

Often, investigators found, the sisters requested refunds before the items had even been delivered to their homes. Online refunds came in the form of gift cards. But the women didn’t actually send the items back, prosecutors wrote.

Instead, the sisters would return the merchandise to a brick-and-mortar store — traveling all around the country, often together, buying round-trip flights for each other — to get a second fraudulent refund, this time to their debit cards, the federal court papers say. They would allegedly use gift card credit to buy more goods, keeping the cycle going.

Federal prosecutors connected each sister to at least three instances of the scam.

In all, the sisters were accused of stealing at least $1 million.

“Refund fraud schemes such as this one simply drives up the costs for retailers and result in higher prices for the rest of us,” U.S. Attorney Tessa Gorman said in a written statement. “We will work with our law enforcement partners to shut these down and hold the perpetrators accountable.”

The case was being investigated by U.S. Homeland Security Investigations and the U.S. Postal Inspection Service.

After learning of the scheme, the retailer changed its return policies, according to the U.S. Attorney’s Office in Seattle.

Snohomish County court records suggest at least two sisters faced legal action over credit card debt in the past decade.

No defense attorneys were listed in their case file as of Thursday.

If convicted as charged, the crimes are punishable by up to 20 years in prison and a $250,000 fine.

Caleb Hutton: 425-339-3454; chutton@heraldnet.com. Twitter: @snocaleb.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Customers enter and exit the Costco on Dec. 2, 2022, in Lake Stevens. (Olivia Vanni / The Herald)
Costco stores could be impacted by looming truck driver strike threat

Truck drivers who deliver groceries and produce to Costco warehouses… Continue reading

Two Washington State ferries pass along the route between Mukilteo and Clinton as scuba divers swim near the shore Sunday, Oct. 22, 2023, in Mukilteo, Washington. (Ryan Berry / The Herald)
Ferry system increases ridership by a half million in 2024

Edmonds-Kingston route remains second-busiest route in the system.

Northshore School District bus driver Stewart O’Leary pictured next to his buses shattered drivers side windshield on Friday, Feb. 14, 2025 in Bothell, Washington. (Olivia Vanni / The Herald)
‘Put me in, coach’: Bus driver back at work after struck by metal bar

Stewart O’Leary, a Northshore employee, has received national attention for his composure during a frightening bus trip.

Robin Cain with 50 of her marathon medals hanging on a display board she made with her father on Thursday, Jan. 2, 2025 in Lake Stevens, Washington. (Olivia Vanni / The Herald)
Running a marathon is hard. She ran one in every state.

Robin Cain, of Lake Stevens, is one of only a few thousand people to ever achieve the feat.

People line up to grab food at the Everett Recovery Cafe on Wednesday, Dec. 4, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Coffee, meals and compassion are free at the Everett Recovery Cafe

The free, membership-based day center offers free coffee and meals and more importantly, camaraderie and recovery support.

The Everett Wastewater Treatment Plant along the Snohomish River on Thursday, June 16, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Everett water, sewer rates could jump 43% by 2028

The rate hikes would pay for improvements to the city’s sewer infrastructure.

The bond funded new track and field at Northshore Middle School on Thursday, Oct. 24, 2024 in Bothell, Washington. (Courtesy of Northshore School District)
Northshore School District bond improvements underway

The $425 million bond is funding new track and field complexes, playgrounds and phase one of two school replacements.

An American Robin picks a berry from a holly tree on Thursday, Feb. 13, 2025 in Edmonds, Washington. (Olivia Vanni / The Herald)
Calling all birders for the annual Great Backyard Bird Count

The Audubon Society will hold its 28th annual Great Backyard… Continue reading

A view of one of the potential locations of the new Aquasox stadium on Monday, Feb. 26, 2024 in Everett, Washington. The site sits between Hewitt Avenue, Broadway, Pacific Avenue and the railroad. (Olivia Vanni / The Herald)
Initial prep work for AquaSox stadium to start, with $200k price tag

The temporary agreement allows some surveying and design work as the city negotiates contracts with designers and builders.

Aaron Kennedy / The Herald
The Joann Fabric and Crafts store at 7601 Evergreen Way, Everett, is one of three stores in Snohomish County that will close as part of the retailer’s larger plan to shutter more than half of its stores nationwide.
Joann store closure plan includes Everett, Arlington, Lynnwood locations

The retail giant filed a motion in court to close approximately 500 stores in the U.S.

Lynnwood
Lynnwood police: 1 suspect in custody, 1 at large after attempted carjacking

Beverly Elementary School went into a precautionary lockdown Thursday afternoon. Numerous officers continue to search for the second suspect.

Candidates announce campaigns for Everett city council seat

Ryan Crowther, founder of the Everett Music Initiative, will challenge incumbent Paula Rhyne for the District 2 seat.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.