Trafficking in iPhones becomes a major scam in Colorado

Trafficking in iPhones becomes a major scam in Colorado
According to a local television news report, there is a new scam going down in Colorado Apple Stores that requires reps to turn a blind eye to what is going on. Homeless and poor people are being approached by scammers willing to give these desperate people cash, usually about $100 to $200, to walk into an Apple Store and purchase several iPhone units at the subsidized price of $199.99 each. The phones are turned over to the scammers, who unlock them and sell them for as much as $700 each in foreign markets.

The victims, who are approached at homeless shelters or blood donation centers, are given the cash to pay for the phones, in addition to the money that they are promised. They are told that they can cancel the contracts within three days. When they can't rescind the signed purchases, the victims are left with a huge monthly debt that they cannot afford. One 19 year old female by the name of Pheonix was desperate for money to pay her rent, which was due the next day. She thought it was a lucky break when she was offered the cash to go into the Apple Store to buy the phones. She now has $6000 of debt that she is responsible for.

In another case, two people will be facing a misdemeanor charge of deception, for tricking a mentally handicapped man into buying several subsidized iPhones at a store near Denver. The handicapped man was allegedly paid $30 per phone by Casey Parker of California and Erin Chamblee of Denver. That pair is known by police for bringing homeless people into Apple Stores to purchase subsidized handsets, which they turn around and sell for hundreds of dollars more in foreign markets. This leaves their victims on the hook for the monthly charges.

Some believe that Apple Store reps are partially to blame. In one case, the victim paid for the phones and signed the paper work, and the units were handed by the rep directly to the scammer. You might also ask yourself if Apple should make reps question cash purchases for a large number of iPhones. But because the store is making money, Apple Store employees seem to be closing their eyes and ignoring the situation.

You can check out the local Denver television station's report on what is being called "credit muling" by watching the videos below.


source: 9News via SlashGear

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64 Comments

1. hafini_27

Posts: 949; Member since: Oct 31, 2013

Damn, they trick poor people who have no money to pay for such high debt. How cruel!

18. Topcat488

Posts: 1415; Member since: Sep 29, 2012

As you can see and read, not only should Apple feel ashamed, those that represent the company and turn a blind eye should go to jail. Crooks all of them a money hungry Co. O.o

19. networkdood

Posts: 6330; Member since: Mar 31, 2010

Well, I think my brother who did work for AT&T dealt with this with other devices, but, iphones, too....

29. james004

Posts: 486; Member since: May 15, 2013

INDIAN! he is just selling these in india to those indian!

30. kosal

Posts: 21; Member since: Oct 19, 2013

He is not an Indian....his name is "Benji karmania"....which nowhere comes close to Indian names

41. alexandrecastro

Posts: 26; Member since: Feb 23, 2014

His name is Benjamin M Kermani

64. james004

Posts: 486; Member since: May 15, 2013

he has the whole indi punjabi face

36. suhas2000

Posts: 27; Member since: Jul 24, 2008

You have shown your ignorance, nothing else needs to be said here!

47. tacarat

Posts: 854; Member since: Apr 22, 2013

Because the first thing everybody wants is to be loudly accused of discrimination. "My money isn't good enough? I'm too stupid? What gives you the right to judge? ". Prosecuting con artists and firing the salespersons who didn't properly explain the return policy and requirements would help. Management should be giving warnings about the scams to staff. The bad PR overshadows the profits.

22. PapaSmurf

Posts: 10457; Member since: May 14, 2012

This is so petty of these crooks. My heart goes out to those in need.

37. Teja171 unregistered

Really ? I thought that you would keep fingering them too. What an irony !

27. Ashoaib

Posts: 3282; Member since: Nov 15, 2013

No wonder when workers commit suicide at apple's foxconn facility in china due to cruel working conditions and apple is making huge profit by keeping manufacturing cost low on workers blood, they can even be a part of ripping off homeless people

28. Ashoaib

Posts: 3282; Member since: Nov 15, 2013

This guy above in the photo is homeless or a scammer?? looks like homeless indian instead of homeless american

33. PapaSmurf

Posts: 10457; Member since: May 14, 2012

With a North Face jacket?

42. alexandrecastro

Posts: 26; Member since: Feb 23, 2014

He's the scammer, just watch the video

48. Ashoaib

Posts: 3282; Member since: Nov 15, 2013

Aah! I just watched the video now on a computer, it was not playing on my phone... he is a filthy scammer

2. Furbal unregistered

That's a whole circle of ignorance

3. dontneedtoknow

Posts: 158; Member since: Feb 17, 2014

That's so bad!! I hope they get caught!

4. wilsong17 unregistered

lol and now we know why the iphone is popular in america dun dun dun

14. Ninetysix

Posts: 2964; Member since: Oct 08, 2012

lol...then which iPhones are getting sold in foreign markets?

5. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

How do these homeless people sign up for a plan for a subsidized phone? They usually will have bad or no credit. It seems that the Apple staff must be complicit with this scam. I guess this is how desperate Apple is now for sales.

17. PBXtech

Posts: 1032; Member since: Oct 21, 2013

I was wondering that too. Address: local park, third sleeping bag from the left. Someone better get fired over this.

6. Kwiss1200

Posts: 9; Member since: Apr 12, 2014

Most homeless people have bad credit.. If it sounds to good to be true, it is.....

7. Taters

Posts: 6474; Member since: Jan 28, 2013

Apple does stuff like this, they just do it legally. However they do it pretty shady with somehow winning 1 billion from Samsung for packaging and rounded corners. And getting Obama to veto the ban.

45. darkkjedii

Posts: 31039; Member since: Feb 05, 2011

Dude stay on topic, that was a pathetically weak jab.

49. MR-H-

Posts: 116; Member since: Apr 10, 2014

Dude try to merge on the topic to validate a good discussion, rather than telling others what you think or believe. Try to be more inclined and expressive than being jelly and stop with you're bla bla. That was truthful and honest jab.

50. darkkjedii

Posts: 31039; Member since: Feb 05, 2011

Nahhh, that was stupid actually. You also should've said (your), not "you're". You're not to smart are you?

55. MR-H-

Posts: 116; Member since: Apr 10, 2014

off topic dude, ,,,, can't you stay on the subject? You looking for errors on my posts? What good will this be to you? Smart... a middle aged guy like you should contribute to others and to the article, instead you look for illogical things like "words" on other's making mistake. Old man grow up act your age, not like a kid. Anyone says honest truthful and finds negative about Apple is a troll or you calling others pathetic weak jab..../ Listen old man be honest and not a fanboy, cause no one on here takes you serious cause no one actually likes you on PA. Fanboys are never to be taken seriously,

59. darkkjedii

Posts: 31039; Member since: Feb 05, 2011

Dude, do you honestly think I give a **** who likes me on this site? I live in the real world, not on this site. I can't believe you actually posted that crap. Ask around this site, and see how many others care if random people, they know nothing about like them.

8. SIGPRO

Posts: 2817; Member since: Oct 03, 2012

Apple should know about this, i think they know but they don't care they only think about money! Apple you suck!

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