LA bakeries, landscaping companies targeted by 'sophisticated' thieves

LOS ANGELES - Eat Your Flowers Bakery in Highland Park is known for beautifully-baked treats hand-decorated with fresh edible flowers. So, CEO and Founder Loria Stern found it slightly unusual when her bakery received an order for more than 1,000 undecorated cupcakes.

"We’re not a cupcake company, so this was kind of a new, tailored custom item for this customer," Stern said. "We’re known for our beautiful edible flower decorations—we’re known for making really beautiful items."

After several email exchanges with someone pretending to be named Zoe Madison, the large, detailed order was confirmed, and a check for more than $7,500 arrived via priority mail. Unable to deposit the check through her phone, Stern took it to Bank of America.

"I said, 'Is this legit?' I wasn’t able to cash it with my phone, and they said, 'We’ll see in 24 hours, but it looks great—it looks fine as of now—it looks like a normal check.'"

When the check cleared, Stern and her team eagerly began work, purchasing thousands of dollars worth of ingredients and supplies.

"It was a really big boost for us – my employees were excited – we were all excited about it," Stern recalled.

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," which was impossible at such short notice.

"We’ve already bought all the batter, there’s no way—this order is complete as of now," Stern said. "And she says, 'Well, I’m going to have to cancel my order unless you can send us half the funds back.' At that point, I was like—okay, I’m going to the bank right away."

Stern says her bank assured her that the check had cleared and that the money would be protected thanks to her email exchanges and receipts. But the next day, the money was gone from the account—and the check was marked "returned." This time, Stern was told the check was counterfeit. She immediately called Peak Trading, the corporation listed on the check, and her heart sank as she spoke to a representative there.

"She said I was the 15th person that day to call about the exact same story happening—the same exact situation," Stern said. "She said they targeted all bakeries and landscaping companies."

"It was a big cut, a big hit, it was a big disappointment, you know? It was such a shock, and it was so disruptive to my business," she added. 

Stern never heard from "Zoe Madison" again. She’s grateful that she didn’t refund half of the money to the alleged scammer, and is now trying to make the best of the situation, donating hundreds of cupcakes and warning other small business owners to be cautious.

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