Costco is a great place to buy your groceries, but the chain is also the target of a $2 billion fraud investigation.
The Justice Department announced the indictments Wednesday.
The Justice Department’s investigation into the fraud was sparked after an anonymous tipster alerted authorities to a large online orderbook of Meijers products that was being advertised as being sold in stores.
Investigators discovered the fraudulent items were actually purchased on eBay, and that the sellers were selling them for a profit.
In an email to reporters, the department said the investigation uncovered evidence that the vendors were “misusing the name of Meiji Co. to commit a scheme to defraud consumers of millions of dollars in direct and indirect consumer goods.”
The seller, a Chinese-based company called Yandex, had $1.3 billion in sales in the U.S. between August 2018 and July 2019.
The Department of Justice is urging all consumers to “immediately stop using the Meijermarkets.”
The company’s website now shows no further links to the fraud.