HAMMOND | Federal authorities say an illegal immigrant from Serbia ran a nationwide bar code-switching scam, reaping bargains that were too good to be true at Lowe's stores before he sold the illegally discounted products online.
Secret Service agents aware of the alleged scheme arrested Branko Nenadic, of Crown Point, after he tried to check out at the Portage Lowe's store Monday, said a source with knowledge of the investigation who asked not to be identified. Nenadic remained jailed Wednesday, and he faces a hearing today in Hammond federal court to determine whether a fraud charge is supported by probable cause.
The judge also will decide whether Nenadic will remain jailed pending trial.
The federal investigation started in January when Lowe's "loss prevention" specialists called Secret Service agents to identify Nenadic, of 8137 Pine Island Terrace, as the main suspect in a nationwide bar code-switching scheme, according to a Secret Service agent's report. Lowe's security personnel told agents Nenadic cost the company $69,272.28, more than $20,000 of it in northern Indiana. Nenadic ran 185 bar code switches at 91 stores in 14 states, the agent wrote.
Nenadic's alleged fraud is a version of a scheme that has victimized many retail stores: He would stick an adhesive bar code belonging to a less expensive item onto a more expensive product at Lowe's, the agent wrote. Federal authorities said Nenadic would pay the illegally discounted price for the item, often in the self-checkout lane, and later he would return the merchandise for its full price in store credit. Nenadic then used the store credit funds to buy more discounted products, the agent wrote.
Lowe's security personnel identified seven other people who returned items Nenadic bought from the store chain, the agent wrote. The agent's report does name every store Nenadic allegedly hit, but the report mentions a buy in January from the Schererville store.
Lowe's security officers told federal authorities Nenadic used an eBay account -- "banci219" -- to sell items matching the products Nenadic bought from the store chain. That account was not selling any items as of Wednesday. Dozens of buyers gave largely positive feedback to banci219 for selling new items including an industrial flooring stapler and a chainsaw.
"Great seller, fast delivery," one buyer wrote.
"Husband is very happy with your saw!!!" another buyer wrote.
Nenadic admitted in court Tuesday he is not a U.S. resident, according to court records. An Immigration and Customs Enforcement agent told the Secret Service agent that Nenadic entered the United States on a Serbian passport and was given permission to stay six months, the Secret Service agent wrote. Nenadic was arrested in February 2009 at a U.S. Border Patrol checkpoint southeast of El Paso, Texas. He was released on $12,000 cash bond, the agent wrote.
Nenadic's defense attorney, William Padula, could not be reached Wednesday for comment.
