updated 03:00 pm EDT, Wed August 26, 2009
iPod scammer sentenced
A 23-year-old man who exploited Apple's warranty program has been sentenced to 13 months in prison, according to the Kalamazoo Gazette. Nicholas Woodhams of Portage, Michigan recently plead guilty to charges of mail fraud and money laundering; in addition to his prison time, he will have to pay $648,568 in compensation to Apple, and another $8,066 to the US Postal Service. Woodhams has been forced to surrender his house, an Audi sedan, a Honda motorcycle and over $570,000 in funds.
Prosecutors charge that in the span between March 2006 and October 2007, Woodhams successfully guessed the serial numbers of over 9,000 iPod shuffles still under warranty. These were entered into a website for Apple's return program, and used to request replacement iPods, then sold online for $49 apiece. "This was not a victimless crime," notes attorney Donald Davis, insisting that "because the costs of fraud are borne by both the consumer and the taxpayer, perpetrators of such crimes must be held accountable."