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Three charged in net scam

Source: USA Today - http://www.usatoday.com

PHILADELPHIA (AP) - Three men have been charged with orchestrating a $20,000 Internet scam in which customers did not receive the Beanie Babies they purchased online, prosecutors said.

The Philadelphia men placed ads on America Online falsely advertising the sale of ''retired'' or discontinued Beanie Babies, according to the U.S. Attorney's Office.

At least 12 people answered the ads, some requesting dozens of the stuffed animals for between $10 and $70 each.

The customers sent money orders or electronically wired payments of up to $5,000, according to the federal indictment. The men sometimes failed to send any stuffed animals or sent damaged or cheaper dolls, prosecutors said.

Samuel Miletto, 30, who prosecutors said masterminded the plan, was indicted Thursday on 19 counts of wire fraud. He faces up to 105 years in prison. Joseph Reed, 31, and Louis Lloyd, 34, were each charged with one count of wire fraud. They both face up to five years in prison.

Beanie Babies normally retail for about $5, but versions that have been retired command high prices from collectors.

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