Apple stung in massive iPod fraud
Monday 23 March 2009
An iPod repairman from Michigan who managed to score more than 9000 iPod shuffles from Apple is facing fraud and money laundering charges.
The Boston Globe reports that Nicholas Woodhams, 23, essentially guessed serial numbers for the scaled-back iPods and entered them into Apple's system, claiming they were replacements for faulty devices.
He made his employees enter serial numbers and have the MP3 player replacements sent to a UPS post box.
When Apple didn't receive a defective iPod in return, it would charge the replacement to a credit card. Woodhams used cards that rejected the transactions, the Globe said.
The computer giant sent out more than 9000 shuffles which Woodhams sold for US$49 each.
The US Government, which filed charges in Grand Rapids last week, wants to seize Woodhams' real estate, Apple computers, two vehicles and a motorbike, plus over half a million dollars - allegedly the proceeds of his shuffle fraud.
This article originally appeared in the New Zealand Herald
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