Shifty with money: Man embezzles $2.5M from bank, scams online shoppers for $30K

MILWAUKEE -- One man, two scams! It started at his workplace, but soon one con-artist expanded his scheme into an online business and tricked online shoppers.

"He embezzled approximately $2.5 million from that bank," said Dave Gealey, U.S. Postal Inspector.

While Joe Graziano Jr. worked as a corporate trust administrator, he shifted money from his bank's customers into accounts he controlled at another bank.

Officials say he would play a constant financial shell game by persuading banks to lend him money by leveraging fancy cars and using false bank balances and doctored tax returns.

Joe Graziano Jr.

One scam wasn't enough, Graziano decided to start selling high-tech equipment online.

"He was putting iMac computers, high-end computers for I believe he was selling them for a lot cheaper than you can buy them from a retail store,"said Gealey.

Once he was paid...

Packages sent empty

"He would mail out the boxes. Nice boxes, mail them out and use Click-N-Ship account," said Gealey.

The problem?

"Customer would receive them, and of course they would open them up and it's totally empty," said Gealey.

When customers complained...

"He would just claim that 'well, what are you talking about? You can see on the Click-N-Ship label it was five pounds when I sent it, it had been there -- is there anything in the box?'" said Gealey.

Joe Graziano Jr.

Twenty four victims lost more than $30,000.

Postal inspectors quickly got involved and found Graziano was putting fake stickers on the boxes indicating weight and confirmation.

"As inspectors, we need a federal search warrant for probable cause to open these packages. So, at no point does a postal employee just randomly open a box to see what is inside. Does not happen. We don't have any stickers," said Gealey.

Graziano Jr. was indicted on bank fraud and mail fraud charges -- he pleaded guilty.