Using trial and error, a Michigan iPod repairman allegedly guessed 9,000 iPod Shuffle serial numbers, convinced Apple to send replacements and then sold them to customers.
"Apple Inc. appears to be the victim of a real shuffle," the Associated Press wrote in its lead sentence. Nice.
Anyway, prosecutors charged Nicholas Woodhams, 23, of the Kalamazoo area, with fraud and money laundering. It's not clear what the penalties will be if Woodhams is convicted, but the government wants to seize more than $571,000 from Woodhams, plus real estate, seven Apple computers, two vehicles and a motorcycle, claiming that he obtained it all with dirty money.
Assistant U.S. Attorney Nils Kessler wrote that Woodhams never owned the products for which he requested replacements. Simply by guessing, Woodhams was able to come up with 9,000 serial numbers, which his employees allegedly entered into Apple's Web site for new iPods. When Apple tried to charge for the Shuffles after not receiving defective units in return, Woodhams allegedly used credit cards that rejected the transactions. Prosecutors say Woodhams then sold the Shuffles for $49 each.
Woodhams' lawyer, Randall Levine, all but admitted his client's guilt. "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," Levine said.
Apple hasn't commented on the case, but it filed its own lawsuit against Woodhams last summer. That case will be on hold as Woodhams deals with the criminal charges.
