Former owner of hardware store accused of massive fraud

(Suffolk District Attorney Daniel F. Conley’s office)

By Globe Staff

The former owner of a South Boston hardware store has been charged with larceny for allegedly making fraudulent charges to customers' credit cards in a scheme that prosecutors said may involve more than 100 victims and hundreds of thousands of dollars.

Erik Joseph, 52, is accused of making fraudulent charges on the credit cards of his customers at Seaport Hardware on Congress Street and funneling the money to a fake business, according to a release issued today by Suffolk District Attorney Daniel F. Conley’s office.

Joseph, of Belmont, pleaded not guilty Tuesday at his arraignment in South Boston Municipal Court. He was ordered held on $75,000 bail. He is due back in court Jan. 11.

According to prosecutors, the fraud dates to September 2005. Joseph allegedly set up a dummy business and obtained an American Express merchant number, a post office box, and a bank account. Using the shell company, Joseph allegedly made 43 fraudulent charges on customers’ credit cards that totaled more than $8,000.

Investigators allege that dozens more cardholders from across Boston and New England have been victimized by the scheme. The state’s Financial Crimes Task Force and US Postal Inspectors had developed evidence that Joseph set up several shell companies, each with its own merchant numbers, PO Box, and phony contact person, according to the press release.

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