Providence Man Sentenced for Gift Card Fraud Scheme
Esteban Perez receives three years in prison for a scheme that compromised thousands of charitable gift cards.
Updated on Oct. 26, 2026 in Financial Crime
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A federal court in Providence sentenced Esteban Perez to 36 months in prison for his role in a gift card fraud conspiracy. The scheme targeted gift cards intended for charities, churches, and schools, resulting in over $230,000 in total losses.
Why it matters
This case highlights the exploitation of charitable resources meant for vulnerable individuals and families. By reselling stolen goods to local businesses, the conspiracy diverted significant funds away from intended recipients.
Esteban Perez was sentenced to 36 months of incarceration followed by three years of supervised release. Investigators reported that the conspiracy compromised at least 2,591 gift cards across 80 different organizations.
The players
Esteban Perez
A Providence resident who was sentenced to prison for operating a gift card fraud scheme.
The details
Perez and his co-conspirators used stolen card numbers to purchase items such as baby formula and household goods from a major grocery store chain. The defendant then acted as a fence, reselling these goods to local grocery stores and bodegas while storing some items in unsanitary conditions.
Timeline
The gift card fraud scheme operated from October 2024 to October 2025.
The court sentenced Esteban Perez on October 26, 2026.
Legal Context
The sentencing follows the federal sentencing guidelines for wire fraud, which scales punishment based on the monetary impact of the criminal activity. Such cases are frequently prosecuted in federal court due to the interstate nature of the fraudulent transactions.
Local grocery stores and bodegas in the area may face scrutiny regarding their sourcing of discounted inventory following this investigation. Residents should remain vigilant about purchasing items from unofficial sources, as these goods may be tied to criminal activity.
The takeaway
Charitable organizations and donors are encouraged to verify the security of donation methods to prevent theft by bad actors. Monitoring gift card usage and reporting suspicious transactions remains critical to protecting assets intended for those in need.
Further reading
Learn more about local oversight regarding Financial Crime.
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Do you trust that major retailers are doing enough to protect customers from gift card fraud?
