Two men arrested by Arnold Police last month and two other men have been charged in federal court for their alleged role in a scheme to return used water heaters for gift cards at Home Depot stores throughout the St. Louis area, the U.S. District Attorney’s Office reported.
The men allegedly received more than $1.7 million in gift cards after returning water heaters with altered serial numbers and manufacture dates. They then used the gift cards to purchase power tools, according to court documents.
Jose Antonio Alvarez-Raya, Aron Suarez-Ruiz, Daniel Barreras-Magallanes and Francisco Aguilar-Oritz on May 27 were each charged with conspiracy to commit wire fraud, court records show.
Alvarez-Raya, Barreras-Magallanes and Aguilar-Ortiz appeared in court on May 28 and pleaded not guilty. The case against Suarez-Ruiz on May 28 was reassigned to a different judge, court documents said.
According to the federal indictment, from March through May 18, the men obtained water heaters in California and transported them on rental trucks to home improvement stores throughout the country.
Alvarez-Raya and Suarez-Ruiz on May 14 allegedly returned water heaters at Home Depot stores in Arnold, Wentzville, Cottleville, St. Charles and St. Louis County. On May 18, Barreras-Magallanes and Aguillar-Ortiz returned two used hot water heaters at a store in Wentzville, the indictment aid.
Arnold Police arrested Alvarez-Raya and Suarez-Ruiz on May 14 after the two allegedly executed the return scheme at the Home Depot store, 3865 Vogel Road, in Arnold. Officers stopped a 2021 GMC box truck just before noon, shortly after the two left the store, according to a probable-cause statement filed by Arnold Police.
Alvarez-Raya was driving the truck, and he opened the back door to reveal 23 water heaters. Officers also allegedly found that Alvarez-Raya had eight fake California identification cards, and Suarez-Ruiz had nine fake California identification cards, the report said.
Investigators learned the two men had returned two water heaters to the Arnold Home Depot. They received gift cards for a total of $1,521.24 for the returned items, according to the report.
Investigators also learned the men would place forged serial numbers and manufacture dates on the water heaters before returning them to Home Depot stores, the report said.
The two men allegedly admitted to Homeland Security agents that they knew the scheme was illegal, and they had fraudulently returned water heaters at stores in different states. The two men also allegedly told the agents they were paid by their “boss” after completing the returns, according to the probable-cause statements.
Alvarez-Raya and Suarez-Ruiz have both been charged with felony forgery and stealing in Jefferson County Circuit Court, according to court documents.
The federal indictment said Barreras-Magallanes and Aguilar-Ortiz on May 15 traveled from California to Missouri. The two allegedly received gift cards totaling $1,661.41 after fraudulently returning water heaters at a Home Depot in Wentzville.
Alvarez-Raya recruited Suarez-Ruiz to participate, and Aguilar-Ortiz recruited Barreras-Magallanes from Mexico. Alvarez-Raya, Aguilar-Ortiz and Barreras-Magallanes are in the U.S. illegally, according to the indictment.
Alvarez-Raya had been living in Washington state. Aguilar-Ortiz is from the Los Angeles area. Suarez-Ruiz was living in Louisville, Ky., the indictment said.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations along with Arnold Police and Wentzville Police investigated the case.
Assistant U.S. Attorney Gwen Carroll is prosecuting the case.