iPod Scammer Slapped with Prison Sentence

A 23-year-old was sentenced to 13 months in prison for an iPod scam that earned him over half a million dollars before getting caught.

Through trial and error, Nicholas Woodhams of Portage, Michigan guessed serial numbers of the iPods still under warranty that were sent to him as an iPod repairman.  He then fraudulently obtained iPods from Apple and sold them online.

“Between March 2006 and October 2007, Woodhams caused Apple to ship more than 9,000 replacement units to a post office box through this deception,”  said a press release from the U.S. Attorney’s Office. “Woodhams then advertised and sold the units through a website for $49 apiece, a fraction of their retail value. In addition to this mail fraud scheme, Woodhams violated federal money laundering laws by wiring $200,000 of his criminally-derived proceeds from a financial institution in Michigan to a brokerage account in Missouri.”

In addition to the year-plus stint in jail, Woodhams will give over the fruits of his deceit including a home in Portage, Michigan, an Audi S4 sedan, an Ariel “Atom 2’ racing car, a Honda motorcycle, six computers and more than $570,000 in U.S. currency.

Woodhams pleaded guilty to fraud and money laundering charges back in April and faced a maximum 30 year jail sentence.

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Via Mlive

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