Richmond man faces federal charges for alleged return fraud scheme
VENN
RICHMOND, Va. (WRIC) — A Richmond man is facing federal charges for his alleged involvement in a return fraud scheme costing major retailers more than $750,000.
According to federal court documents, Cody Cavallaro — a Chimborazo resident — was charged with conspiracy to commit mail fraud.
Prosecutors said Cavallaro's actions were part of an elaborate return fraud scheme in which he would steal items after placing online orders and resell them for his own financial gain.
In one instance in April 2023, Cavallaro bought 30 ceiling fans from Home Depot online that totaled $22,500. After the order was shipped to his home, he allegedly faked a return by altering the return delivery address and mailing an empty envelope instead of the return item.
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When the mail carrier scanned the return shipping label, Cavallaro allegedly pocketed the refund and resold the items online using Mercari or Amazon.
"It was a pretty sophisticated and complicated fraud that is alleged," said 8News legal analyst Russ Stone.
Federal prosecutors said Cavallaro had been making similar actions for 3 years, from 2022 to 2025, using other major retailers like Amazon and Walmart. The indictment states Cavallaro cost these companies more than $750,000.
"It looks like it was a lengthy investigation and a complicated investigation because of the complexity of the fraud that was alleged to have been committed," said Stone.
To help cover the scheme and evade loss prevention systems from retailers, Cavallaro allegedly used different home addresses and hundreds of different email addresses. He allegedly used fake names when placing orders — like Cody Coco, Pool Guy and Ziggy Slams.
Stone said Cavallaro is facing up to five years behind bars for conspiracy to commit mail fraud. The indictment states he paid others to help execute the scheme.
"A conspiracy — by definition — requires more than one person. Clearly, based on the evidence that is alleged, there were other individuals involved in this," said Stone.
Cavallaro spoke with investigators and admitted to participating in the alleged scheme in April. His court appearance is scheduled for next week on Tuesday, Nov. 18.
8News contacted Cavallaro's attorney and did not hear back. Home Depot declined to comment on the ongoing case. Other companies named in the indictment did not respond before the publication of this article.
