How did a sophisticated scam target Los Angeles bakeries and landscaping companies?

In a recent wave of criminal activity, several bakeries and landscaping companies in Los Angeles have fallen victim to a sophisticated scam. One of the most notable cases involves the renowned Eat Your Flowers Bakery in Highland Park, celebrated for its beautifully-baked treats adorned with fresh edible flowers. The CEO and Founder, Loria Stern, shared her harrowing experience, which serves as a cautionary tale for other business owners in the greater LA area.

The Deceptive Order

The incident began when Eat Your Flowers Bakery received an unusual order for more than 1,000 undecorated cupcakes. Stern found this request peculiar as her bakery is not known for producing plain cupcakes but rather for their intricate edible flower decorations. After several email exchanges with a supposed customer named Zoe Madison, the large and detailed order was confirmed. A check for over $7,500 arrived via priority mail, which Stern attempted to deposit through her phone. When this method failed, she took the check to Bank of America.

“Is this legit?” Stern questioned the bank, expressing her concerns. The bank assured her that the check appeared fine and would clear within 24 hours. When the check did clear, Stern and her team began preparing the order, purchasing thousands of dollars worth of ingredients and supplies. This order was seen as a significant boost for the employees, who were all excited about the opportunity.

The Unexpected Twist

However, just days before the cupcakes were scheduled to be picked up, Madison sent an email asking Stern to revise the order due to budget constraints. Stern found this request impossible to accommodate on such short notice, especially since the ingredients had already been purchased. Madison then threatened to cancel the order unless Stern refunded half of the funds.

Stern, concerned about the legitimacy of the transaction, returned to the bank, which reassured her that the money was protected due to the email exchanges and receipts. But the next day, the money vanished from her account, and the check was marked “returned.” Stern was informed that the check was counterfeit.

The Broader Impact

Upon contacting Peak Trading, the corporation listed on the check, Stern’s heart sank. A representative informed her that she was the 15th person that day to call about the exact same scam. This revelation highlighted that the scam was not isolated but part of a broader scheme targeting bakeries and landscaping companies across Los Angeles.

“It was a big cut, a big hit, and a big disappointment,” Stern lamented. The scam was not only a financial blow but also a significant disruption to her business. Despite the setback, Stern is grateful that she did not refund any money to the alleged scammer. She is now trying to make the best of the situation by donating hundreds of cupcakes and warning other small business owners to be cautious.

“It’s sad to think we have to do that when we’re busy,” Stern said. “I’m not a forensic detective… I’m trying to bake! If it can happen to me, this can happen to anyone. It’s sophisticated.”

Our Advice on the City

For those visiting Los Angeles, it’s essential to be aware of the city’s vibrant small business community. While enjoying the local bakeries and landscaping services, always ensure transactions are secure and verified. For occasional travelers, a visit to Highland Park’s Eat Your Flowers Bakery offers a delightful experience of beautifully decorated treats.

For expert travelers, consider exploring the broader implications of local scams on small businesses. Engage with local entrepreneurs to understand their challenges and support their efforts to maintain the city’s unique charm and entrepreneurial spirit.

In conclusion, while Los Angeles offers a plethora of delightful experiences, it’s crucial to remain vigilant and supportive of the local business community. By doing so, we can help preserve the integrity and vibrancy of this iconic city.