PROVIDENCE – A Providence man has been sentenced in federal court in Rhode Island for his role in a yearlong scheme involving the fraudulent use of thousands of gift cards purchased for charities, schools, and community organizations.
According to the Department of Justice, 69-year-old Esteban “Steven” Antonio Perez was sentenced by U.S. District Court Chief Judge John McConnell, Jr., to 36 months of incarceration to be followed by three years of supervised release. Perez previously pleaded guilty to conspiracy to commit access device fraud and access device fraud.
According to court documents and information presented at sentencing, between October 2024 and October 2025, Perez and his co-conspirators compromised at least 2,591 gift cards, resulting in more than $230,000 in losses. The gift cards were purchased in bulk by more than 80 organizations including charities, churches, and schools and were intended to support individuals and families in need. Using the stolen card numbers, members of the conspiracy purchased baby formula, household goods, coffee, energy drinks, food, and other items from a major grocery store chain in Rhode Island and Massachusetts.
Perez acted as the primary fence for the fraud operation. He bought the stolen goods from co-conspirators at discounted rates and resold them to local grocery stores and bodegas. When Perez was arrested, investigators found his vehicle and storage unit filled with food products stored in unsanitary conditions, including bags of raw shrimp believed to have been left unrefrigerated overnight, posing potential health risks to unsuspecting consumers.
“Perez exploited gift cards purchased to help people in need, turning charitable generosity into personal profit,” said First Assistant U.S. Attorney Charles Calenda. “This sentence imposed underscores the serious consequences of fraud that harms both business and the communities that they serve.”
“Perez and his co-conspirators stooped to the lowest low: they exploited those in need by stealing gifts intended for struggling families to enrich themselves. They then further harmed the community by using the proceeds to sell potentially dangerous food for a profit,” said Homeland Security Investigations (HSI) New England Acting Special Agent in Charge Jeffrey Grimming. “HSI works tirelessly with our law enforcement and private sector partners to track down and dismantle these fraud schemes to keep your money safe.”
The fraud scheme forced the victim retailer to devote extensive investigative resources and ultimately reimburse affected customers, many of whom were nonprofits serving underprivileged children, cancer patients, survivors of domestic violence, and other families in need.
The case was prosecuted by Assistant U.S. Attorney Taylor Dean.
The matter was investigated by HSI.
