Apple loses 9,000 iPods in massive fraud
Apple has been struck by fraud once again, this time by a Michigan iPod repairman who ripped the manufacturer off to the tune of 9,000 iPod Shuffle media players.
Nicholas Woodhams, a 23-year-old Michigan resident, is facing charges for fraud and money laundering. Woodhams allegedly guessed over 9,000 device serial numbers for the popular music device, then entered them into the Apple repair system, thereby claiming replacement units for devices which were faulty, according to an Independent article. It is alleged that he even made his employees enter serial numbers for the devices and have the MP3 player replacements sent to a UPS postal box.
Evidently Woodhams had the caper well-planned. He gave credit card numbers to the Cupertino manufacturer to use for charges which would normally be associated with the replacements. He had arranged for those credit cards to reject charges as they were entered by Apple. These ploys worked over 9,000 times. For his trouble, Woodhams was able to defraud the manufacturer for just short of half a million dollars.
The US Government, which filed charges in Grand Rapids last week, wants to seize real estate belonging to Woodhams, several Apple computers, two vehicles and a motorbike, plus over half a million dollars, all allegedly the proceeds of his Shuffle fraud. Woodhams’ attorney, Randall Levine, said, “We’ve been cooperating with the government and are in the process of negotiating a resolution. He is one of those guys who is computer-savvy. This is a very bright man who did not fully appreciate the seriousness of the situation.â€
Assistant U.S. Attorney Nils Kessler will be standing on the other side of the courtroom in Grand Rapids. Kessler said, “Through trial and error, the defendant determined that he could guess valid, warrantied serial numbers and enter them into Apple’s Web site for ‘replacement’ units without ever in fact purchasing or possessing the ‘original’ units.”
It is apparent that Woodhams will soon be facing the music.
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