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Southern California bakery owner targeted in elaborate check fraud scam

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Southern California bakery owner targeted in elaborate check fraud scam

A Southern California bakery owner is warning other business owners after she was targeted in an elaborate counterfeit check scam.

Loria Stern, the owner of Eat Your Flowers bakery in Highland Park, has been running her business for 12 years. Throughout that time, Stern said she’s seen her fair share of scams, but this latest scheme truly surprised her.

It began in early August when she was contacted by email asking for an order of 1,000 cupcakes.

The scammer, someone named “Zoe Madison,” said she didn’t want to pay with a credit card or through mobile payment apps, so she sent a check for $7,560 instead.

When Sterns cashed the check at the bank, it initially cleared so she began working on the large cupcake order.

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“There were a lot of specific details in the emails going back and forth with her that really made me believe that this order was happening,” Stern said.

  • The check that was sent by the scammer that Loria Stern successfully cashed before later discovering the check was counterfeit. (Loria Stern)
  • Loria Stern, owner of Eat Your Flowers bakery in Highland Park, speaks to KTLA's Rachel Menitoff on August 23, 2024. (KTLA)
  • Eat Your Flowers bakery in Highland Park. (KTLA)
  • Loria Stern, owner of Eat Your Flowers bakery in Highland Park, prepares a batch of cupcakes on August 23, 2024. (KTLA)
  • The second email from the scammer asking for an order change and a refund two days before the scheduled pick-up date. (Loria Stern)
  • Loria Stern's reply to the scammer telling her the custom order could not be altered anymore. (Loria Stern)
  • Loria Stern, owner of Eat Your Flowers bakery in Highland Park, prepares a batch of cupcakes on August 23, 2024. (KTLA)

However, two days before the scheduled pick-up, she received another email from the suspect saying she needed to revise the cupcake order “due to budget constraints.” She wanted Stern to cut the bakery order in half and refund the difference in cost.

Stern told the customer that wasn’t an option as the order was a custom one.

“The next day, 24 hours before she was supposed to pick up the cupcakes, the funds were withdrawn from my account and it was cited as a counterfeit check,” she recalled.

Stern called the company listed on the check — Peak Trading Corporation located in upstate New York. 

Their accountant told her that 15 other small business owners, specifically within the service industry, had also called with the exact same complaint.

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Lou Rabin, a cybersecurity expert, said scammers are becoming increasingly sophisticated and able to circumvent any red flags raised by potential victims.

“AI is really changing the game,” Rabin said. “It’s the reason that the English on these emails is impeccable. They’re very persuasive, so business owners really need to understand and have a process for processing orders and verifying your customers.”

As for Stern, she hopes that by sharing her story, she’s able to prevent another business owner from falling prey. 

“This was just a really advanced and a really intricate scam,” she said. “I have a feeling this is their full-time job. They’re doing these elaborate scams to different businesses and I guarantee they’re making money.”

Rabin said it’s important to verify every customer before conducting any large transactions and when possible, speak to a live person over the phone and verify information with an online search.

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Los Angeles, Ca

About 20 detained after armed suspect call sparks LAPD response in Koreatown

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About 20 detained after armed suspect call sparks LAPD response in Koreatown

About 20 people were detained Saturday during a large police response in Los Angeles’ Koreatown after authorities received reports of an armed man threatening people, officials said. Officers responded to the 3400 block of West 8th Street near Kingsley Drive on reports of an assault with a deadly weapon, according to the Los Angeles Police […]

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Man found guilty of sex trafficking victim along L.A.’s Figueroa Corridor

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Man found guilty of sex trafficking victim along L.A.’s Figueroa Corridor

A former Riverside County man was found guilty of sex trafficking a female victim and forcing her to engage in commercial sex acts along L.A.’s notorious Figueroa Corridor.

Elias Abdul Shabazz, 34, formerly of Perris, was found guilty by a jury following a five-day trial, the U.S. Attorney’s Office said.

Prosecutors said Shabazz had led the victim to believe they were in a romantic relationship before he turned physically and sexually violent. He began demanding that the victim engage in commercial sex acts from May to October of 2021, court documents said.

He carried a handgun with him and, on occasion, was accused of using it to pistol-whip the victim. He also fired the gun at her feet while threatening to kill her, prosecutors said.

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At trial, the victim said Shabazz demanded that she meet a daily quota of commercial sex proceeds and that she was terrified of the consequences of not meeting that quota. 

She testified that Shabazz compelled her to work in the notorious Figueroa Corridor in South L.A., a dangerous area known for human trafficking and prostitution.

Shabazz had confiscated her identification card, Social Security card and birth certificate. He constantly monitored her cell phone to stop her from communicating with any friends or family.

“He also introduced her to addictive narcotics and controlled every aspect of her life, including when she ate, slept and showered,” prosecutors said.

In May 2025, Shabazz was arrested and has remained in federal custody. His last known address at the time was in Washington, D.C.

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On June 26, 2026, Shabazz was found guilty of one count of coercing or enticing interstate transportation for purposes of prostitution.

A sentencing hearing is scheduled for Oct. 6, where he faces 15 years to life in prison.

“Sex trafficking matters rank among the most tragic cases our office prosecutes,” said First Assistant U.S. Attorney Bill Essayli. “This defendant will now face many years in a federal prison cell for his sick, disgusting, and disturbing behavior.”

“Elias Shabazz preyed on a vulnerable victim using physical and sexual violence and cruel psychological coercion to compel commercial sex acts for his own profit,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “There is no place for this type of conduct in civilized society. We deeply respect the victim’s courage to face her trafficker in court. The Criminal Division will continue to bring these cases and try them.”

Anyone with information about human trafficking can report tips to the National Human Trafficking Hotline at 888-373-7888

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Watch Project Angel Food's 'Lead with Love' telethon on KTLA

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Watch Project Angel Food's 'Lead with Love' telethon on KTLA

The star-studded feel-good giveback event of the summer has returned. KTLA 5 is teaming up once again with Project Angel Food for the annual “Lead with Love: Going the Distance” telethon to raise critical funds for medically tailored meals delivered to people living with serious illnesses throughout Los Angeles County. The seventh annual telethon airs […]

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