A BJ’s Wholesale Club employee allegedly used the retailer’s road-hazard warranty program to provide free replacement tires to friends and associates who did not qualify for them.
Julio Cordova, 21, worked as a sales associate at the BJ’s location in Hialeah, Florida. Investigators accuse him of processing fraudulent warranty claims between May 3 and August 2.
Individual replacements were valued at as much as $550, while the combined loss to BJ’s reached approximately $3,789, according to Local 10 News.
Investigators also say Cordova received kickbacks for approving the claims. He was arrested August 5 on charges of organized fraud and third-degree grand theft.
The Alleged Claims Continued for Three Months
BJ’s Road Hazard Warranty applies to qualifying tires purchased through the retailer. Depending on when covered damage occurs, an eligible customer may receive a free replacement or credit toward another tire.
The claims processed by Cordova involved tires that his friends and associates had purchased elsewhere, according to the Miami-Dade Sheriff’s Office arrest report. By approving the claims, Cordova allegedly made the tires appear eligible for warranty benefits even though they did not meet the retailer’s purchase requirement.
Investigators placed the disputed transactions between May 3 and August 2. Cordova had worked at the Hialeah store since November 2023. Authorities described multiple warranty claims. Each replacement was valued at up to $550, while BJ’s estimated its combined loss at approximately $3,789. The arrest report also accuses Cordova of receiving kickbacks in exchange for approving the replacements.
Police Say He Admitted Processing the Claims
After investigators advised Cordova of his rights, he agreed to answer questions about the transactions. Deputies said he admitted processing the replacements and acknowledged that the original tires had not been purchased from BJ’s.
Cordova also allegedly said he knew the claims were false and violated the company’s road-hazard policy, according to the arrest report. He was taken to the Turner Guilford Knight Correctional Center and was being held on a $5,000 bond as of Thursday afternoon.
No plea, conviction or final court resolution had been reported. The charges are allegations, and Cordova is presumed innocent unless proven guilty.
Keep Proof of Purchase for Every Warranty Claim
Customers should retain the original receipt, installation record and warranty documents for their tires. BJ’s published warranty terms require proof of purchase and state that the warranty is available only to the original purchaser of qualifying tires bought through the retailer.
Customers should not allow an employee, friend or other person to process a claim using false purchase information or an account belonging to someone else. Receiving merchandise through a knowingly ineligible claim can lead to the warranty being canceled and may expose everyone involved to a fraud investigation.
Retailers can reduce internal warranty fraud by requiring independent verification of the original purchase, restricting employees from approving claims involving friends or relatives and reviewing repeated overrides, unusually valuable replacements and claims processed by the same worker.