LOS ANGELES — An online wholesaler has filed suit against and individual and his businesses for alleged fraud.

T-Cetra LLC filed a complaint Aug. 25 in U.S. District Court for the Central District of California, Western Division, against John Guzman, Sell Your Phone and The Wireless Store, alleging that they acted in bad faith and exploited an error in the plaintiff's processing system.

According to the complaint, the plaintiff alleges that in March 2015, T-Cetra LLC experienced an error in its transaction processing system as it began crediting/refunding $20 instead of 20 percent to defendants (retailers) for every $3 TopUp card processed. The defendants allegedly harnessed the situation by purchasing tens of thousands of TopUp cards. The plaintiff purportedly demanded the defendants return the fraudulently obtained “refunds” amounting to a total of $743,976.42, but failed to locate the defendants.

The plaintiff holds John Guzman, Sell Your Phone and The Wireless Store responsible because the defendants allegedly exploited an error in the plaintiff’s processing system, entered transactions that were not supported by actual purchases and failed/refused to return the funds paid by mistake.

The plaintiff requests a trial by jury and seeks judgment in its favor, interest, damages in the amount of $734,976.42, compensatory, consequential, special and punitive damages, attorneys' fees, costs of suit, expenses incurred and other relief that the court deems just. It is represented by Todd E. Whitman of Allen Matkins Leck Gamble Mallory & Natsis LLP in Los Angeles and Matthew D. Harper and Jared J. LeFevre of Eastman & Smith Ltd. in Toledo, Ohio.

U.S. District Court for the Central District of California, Western Division, case number 16-cv-06416

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U.S. District Court for the Central District of California

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