Order for 1,000 cupcakes at LA bakery turns out to be part of major counterfeit check scam

LOS ANGELES (KABC) -- Loria Stern has a unique specialty when it comes to baking: incorporating edible flowers into baked goods, primarily cookies and special occasion cakes.

Last week, Stern received an unusual online order for about 1,000 cupcakes.

"It was kind of odd because we are not known for cupcakes," she said.

But Stern was excited about the order and the income for her business - Eat Your Flowers - and employees. She said the person sent a check for just over $7,500 by priority mail.

She stopped by her bank for advice and said she was told that if the funds went through, it was a good check. The funds did go through.

Stern then bought all the ingredients and started making the cupcakes.

However, the person who placed the order said they wanted to cut it in half and get half of the money back.

"I responded and said, 'No, there's no way we can do that. We've already bought all the ingredients. We've already made the batter,'" said Stern, who said she was reassured by a bank representative.

"My bank said, 'You'll be protected here, especially if you have an invoice, and you know, all the emails going back and forth,'" she said.

However, the next day, the funds were withdrawn from her account.

"They said, 'Oh, it's been cited as a counterfeit check,'" recalled Stern. "Essentially, what the scammer did is they stole another company's checkbook and wrote checks out to different vendors."

Stern said she contacted the company listed on the check and was told she was the 15th person that day calling about the same scam, all bakeries and landscaping companies.

"Everyone had a similar story, where they rushed to purchase all the ingredients, started the work, bought all the materials and then asked by this person to get a refund sent to them," said Stern.

She's been able to sell some of the cupcakes her bakery made but still has a lot of leftover ingredients. Stern said the whole ordeal was a hard hit financially and emotionally.

"It really made me feel disheartened about humanity," said Stern, who hopes that sharing her experience can help other small business owners. "I wanted other business owners, and maybe just people in general, to be wary of scams that could happen because they can be really disruptive."

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