Case 8:20-cv-01794-CEH-AAS Document 1 Filed 08/03/20 Page 1 of 11 PageID 1

UNITED STATES DISTRICT COURT

MIDDLE DISTRICT OF FLORIDA
TAMPA DIVISION

UNITED STATES OF AMERICA,

Plaintiff,

Case No. ________________________

v.

THU PHAN DINH,

TRAN KHANH,
NGUYEN DUY TOAN,

all of whom are doing business as

“www.zerostore.site” and other domains
identified in Attachment A,

Defendants.

__________________________________/

UNITED STATES OF AMERICA’S COMPLAINT FOR

TEMPORARY RESTRAINING ORDER AND
PRELIMINARY AND PERMANENT INJUNCTIONS

Plaintiff, the United States of America (“United States”), through its

undersigned counsel, hereby sues Defendants THU PHAN DINH, TRAN KHANH,

and NGUYEN DUY TOAN, all of whom are doing business as

“www.zerostore.site” and other domains (“Defendants”) and alleges as follows:

INTRODUCTION

1. Defendants are engaging in a wire fraud scheme that defrauds

consumers in the United States and exploits the current COVID-19 pandemic.

1
Case 8:20-cv-01794-CEH-AAS Document 1 Filed 08/03/20 Page 2 of 11 PageID 2

2. Defendants are using hundreds of websites, multiple PayPal accounts,

and various email addresses to effectuate the scheme. The fraudulent websites

operated by Defendants are listed in Attachment A.

3. Defendants create and operate websites that appear to be online retail

stores offering products for sale, including health and safety products that are in high

demand during the COVID-19 pandemic, such as hand sanitizer, disinfecting wipes,

and hand soap.

4. To accept funds from the fraudulent website sales, Defendants create

multiple email addresses tied to various names, then use these email addresses to

open multiple PayPal accounts. Consumers who place orders for products on the

websites submit payment via PayPal, and Defendants receive the payments for the

orders. Defendants do not, however, send any of the purchased products.

5. In response to consumer complaints, Defendants provide consumers

and PayPal false UPS and/or USPS tracking numbers purporting to show that

products were actually delivered.

6. Defendants also falsify the contact information on their websites,

including “customer service” phone numbers belonging to unaffiliated individuals

and companies, causing these entities to receive disruptive complaint calls about the

fraudulent websites.

7. After reaching a high volume of customer complaints and/or the

attention of the web hosting company and/or law enforcement, Defendants will

2
Case 8:20-cv-01794-CEH-AAS Document 1 Filed 08/03/20 Page 3 of 11 PageID 3

close certain websites and move their online “stores” to other web domains they own

to continue to profit from the scheme.

8. Defendants also rotate the PayPal accounts they use in order to avoid

drawing PayPal’s attention by having high volumes of disputed charges and

consumer complaints linked to a specific account.

9. Since at least December 2019, Defendants have opened multiple

websites purporting to sell a variety of products, including toys, cosmetics, beauty

supplies, and cooking tools. Defendants modified some of their websites in early

2020 to purportedly offer health and safety items that were scarce as a result of the

COVID-19 pandemic, including hand sanitizer and disinfecting wipes.

10. The claims made on the Defendants’ websites are false, and are

designed to induce victims to pay Defendants for non-existent products, and/or to

obtain personal information from victims for purposes of engaging in fraudulent

purchases and/or identity theft.

11. The United States of America (“the United States”) seeks to prevent

continuing and substantial injury to the victims of this fraudulent scheme by bringing

this action for a temporary restraining order, preliminary and permanent injunctions,

and other equitable relief, pursuant to 18 U.S.C. § 1345 in order to enjoin the

ongoing commission of wire fraud in violation of 18 U.S.C. § 1343 and conspiracy to

commit wire fraud under 18 U.S.C. § 1349.

3
Case 8:20-cv-01794-CEH-AAS Document 1 Filed 08/03/20 Page 4 of 11 PageID 4

JURISDICTION AND VENUE

12. The Court has subject matter jurisdiction over this action pursuant to

18 U.S.C. § 1345 and 28 U.S.C. §§ 1331 and 1345.

13. Venue is proper in this district pursuant to 28 U.S.C. § 1391(b)(3).

PARTIES

14. Plaintiff is the United States of America.

15. Defendants reside outside of the United States. Defendants have taken

steps to conceal their identities and physical addresses.

16. In furtherance of their fraudulent scheme, Defendants have had

extensive contacts with the United States. Defendants have created and maintained

websites containing numerous false and misleading statements directed at potential

victims throughout the United States. Defendants provide false business addresses

on their websites, claiming to be located in the Middle District of Florida, and other

locations in the United States. Defendants also provide false “customer service”

phone numbers that actually belong to people and companies in the United States.

Defendants’ victims are throughout the United States, including within the Middle

District of Florida.

17. Defendant Thu Phan DINH has created PayPal accounts and received

payments in connection with the fraudulent websites. DINH has also registered

website domains used to carry out the scheme. DINH resides outside of the United

States. Acting alone or in concert with others, he has formulated, directed,

controlled, had the authority to control, or participated in the acts and practices set

4
Case 8:20-cv-01794-CEH-AAS Document 1 Filed 08/03/20 Page 5 of 11 PageID 5

forth in this Complaint doing business as “www.zerostore.site” and other domains as

listed in Attachment A. DINH is subject to personal jurisdiction in this Court

pursuant to Fed. R. Civ. P. Rule 4(k)(2) based on his aggregate contacts with the

United States.

18. Defendant Tran KHANH has created PayPal accounts and received

payments in connection with the fraudulent websites. KHANH has also registered

website domains used to carry out the scheme. KHANH resides outside of the

United States. Acting alone or in concert with others, he has formulated, directed,

controlled, had the authority to control, or participated in the acts and practices set

forth in this Complaint doing business as “www.zerostore.site” and other domains as

listed in Attachment A. KHANH is subject to personal jurisdiction in this Court

pursuant to Fed. R. Civ. P. Rule 4(k)(2) based on his aggregate contacts with the

United States.

19. Defendant Nguyen Duy TOAN has created PayPal accounts and

received payments in connection with the fraudulent websites. TOAN has also

registered website domains used to carry out the scheme. TOAN resides outside of

the United States. Acting alone or in concert with others, he has formulated,

directed, controlled, had the authority to control, or participated in the acts and

practices set forth in this Complaint doing business as “www.zerostore.site” and

other domains as listed in Attachment A. TOAN is subject to personal jurisdiction

in this Court pursuant to Fed. R. Civ. P. Rule 4(k)(2) based on his aggregate contacts

with the United States.

5
Case 8:20-cv-01794-CEH-AAS Document 1 Filed 08/03/20 Page 6 of 11 PageID 6

DEFENDANTS’ ONGOING FRAUDULENT SCHEME

20. The COVID-19 pandemic has caused unusually high demand for

certain health-related items and cleaning supplies, such as hand sanitizer and

disinfectant wipes, that are useful to help prevent the spread of the virus. This

unusually high demand has caused shortages which have made these products

difficult to find, both on the shelves of brick and mortar stores and on e-commerce

websites.

21. Defendants’ wire fraud scheme has targeted American consumers who

are searching for health and safety items that have become scarce due to the COVID-

19 pandemic.

22. In furtherance of their scheme, Defendants created websites

fraudulently purporting to be online e-commerce stores. In December 2019,

Defendants’ websites were purporting to sell various consumer goods, including toys

and gym equipment. Beginning around March 2020, when the COVID-19 pandemic

began to intensify in the United States, Defendants modified many of their websites

to purport to sell health and safety items that had become scarce in the U.S. market.

23. Each of Defendants’ websites directs consumers to pay for the items

they wish to purchase through PayPal. PayPal directs the consumer to pay the listed

purchase price of the item(s) to the PayPal account that Defendants have associated

with the website.

24. Once consumers make their payment, however, Defendants keep the

consumers’ money, but never send the products.

6
Case 8:20-cv-01794-CEH-AAS Document 1 Filed 08/03/20 Page 7 of 11 PageID 7

25. When victims file complaints with PayPal, Defendants provide

fraudulent UPS tracking numbers to demonstrate that they supposedly shipped the

victims’ purchased items. In some instances, these UPS tracking numbers have

caused PayPal to refuse to refund victims’ money.

26. To carry out their scheme, the Defendants have registered hundreds of

website domains with the registrar GoDaddy.com (“GoDaddy”). The Defendants re-

use much of the structure and content of the websites, allowing them to open

numerous websites with little additional time and effort. Defendants shut down

some websites when they receive a high volume of complaints, shift their scheme to

other website domains, then re-open the websites after some time has passed.

27. Defendants have also opened hundreds of PayPal accounts to accept

payments from their fraudulent websites. To create the PayPal accounts, Defendants

have opened hundreds of email accounts that they use to create an identity to register

with the associated PayPal account. Many of these identities are either fake or stolen

from real people.

28. Defendants have falsified their contact information on the websites,

causing unrelated individuals and entities in the United States to receive complaints

relating to Defendants’ fraudulent conduct.

29. At least tens of thousands of victims, residing in all 50 states, have

been defrauded by Defendants’ scheme.

7
Case 8:20-cv-01794-CEH-AAS Document 1 Filed 08/03/20 Page 8 of 11 PageID 8

30. Defendants have collected personal and financial information for

hundreds of individuals in the United States obtained via the fraudulent website

sales.

31. Victims have suffered, and will continue to suffer, financial losses and

identity theft from the fraudulent scheme engaged in and facilitated by Defendants.

32. Defendants’ fraudulent scheme is ongoing. Absent injunctive relief by

this Court, Defendants’ conduct will continue to cause injury to victims.

COUNT I
(U.S.C. § 1345 – Injunctive Relief)

33. The United States re-alleges and incorporates by reference Paragraphs

1 through 32 of this Complaint as though fully set forth herein.

34. By reason of the conduct described herein, Defendants violated, are

violating, and are about to violate 18 U.S.C. §§ 1343 and 1349 by executing schemes

and artifices to defraud for obtaining money or property by means of false or

fraudulent representations with the intent to defraud, and, in so doing, use wire

communications.

35. Upon a showing that Defendants are committing or about to commit

wire fraud, the United States is entitled, under 18 U.S.C. § 1345, to a temporary

restraining order, a preliminary injunction, and a permanent injunction restraining

all future fraudulent conduct and any other action that this Court deems just in order

to prevent a continuing and substantial injury to the victims of fraud.

36. As a result of the foregoing, Defendants’ conduct should be enjoined

pursuant to 18 U.S.C. § 1345.

8
Case 8:20-cv-01794-CEH-AAS Document 1 Filed 08/03/20 Page 9 of 11 PageID 9

PRAYER FOR RELIEF

WHEREFORE, Plaintiff, United States of America, requests of the Court the

following relief:

A. That the Court issue an order, pursuant to 18 U.S.C. § 1345, pending a

hearing and determination of the United States’ application for a preliminary

injunction, that Defendants, their agents, officers, and employees, and all other

persons or entities in active concert or participation with them, are temporarily

restrained from:

(1) committing wire fraud,

(2) maintaining and doing business through the use of the domain

“zerostore.site” and the other domains listed in Attachment A,

(3) using the domain “zerostore.site” and the other domains listed in

Attachment A for any purpose,

(4) using wire communications to make any false representations relating

to the sale of consumer goods or to transmit any materials that contain

false or misleading statements relating to the sale of consumer goods,

(5) destroying business records related to Defendants’ business, financial,

or accounting operations, and

(6) taking actions designed to interfere with any additional Court orders

regarding these domains.

B. That the Court issue an order requiring the registries, CentralNic

Registry and Verisign, Inc., and the registrar, GoDaddy Inc., for

9
Case 8:20-cv-01794-CEH-AAS Document 1 Filed 08/03/20 Page 10 of 11 PageID 10

“www.zerostore.site” and the domains listed in Attachment A to take the necessary

steps to prevent further use of the websites in Defendants’ fraudulent scheme.

C. That the Court issue a preliminary injunction on the same basis and to

the same effect.

D. That the Court issue a permanent injunction on the same basis and to

the same effect.

E. That the Court order such other and further relief as the Court shall

deem just and proper.

Dated: August 3, 2020

Respectfully submitted,

MARIA CHAPA LOPEZ

United States Attorney

/s/ Carolyn B. Tapie

CAROLYN B. TAPIE
Assistant United States Attorney
USA No. 190
400 North Tampa Street, Suite 3200
Tampa, Florida 33602
Telephone: (813) 274-6380
Facsimile: (813) 274-6198
Email: [email protected]

ETHAN P. DAVIS
Acting Assistant Attorney General
United States Department of Justice
Civil Division

10
Case 8:20-cv-01794-CEH-AAS Document 1 Filed 08/03/20 Page 11 of 11 PageID 11

MICHAEL D. GRANSTON
Deputy Assistant Attorney General

GUSTAV W. EYLER
Director
Consumer Protection Branch

JOHN W.M. CLAUD

Assistant Director

KATHRYN A. SCHMIDT
Trial Attorney
Consumer Protection Branch
U.S. Department of Justice
P.O. Box 386
Washington, DC 20044
Telephone: (202) 598-8697
Facsimile: (202) 514-8742
Email: [email protected]

Counsel for United States

11