Apple iPod Shuffle (March 12, 2009 AP)
Updated: Tuesday, 25 Aug 2009, 9:09 PM EDT
Published : Tuesday, 25 Aug 2009, 9:09 PM EDT
GRAND RAPIDS, Mich. (WOOD) - A 23-year-old Kalamazoo man charged with mail fraud and money laundering was sentenced Tuesday to 13 months in prison and he must pay $648,568 in restitution to Apple.
Nicholas Arthur Woodhams also was ordered to pay $8,066.85 to the postal service.
Woodhams created a business to fix broken iPod shuffles, federal documents show. He would use the serial numbers to get Apple to send replacements, which he would turn around and sell online for $49 each.
He did that more than 9,000 times in 2006 and 2007, prosecutors said.
Woodhams sold the shipped the stolen merchandise with counterfeit postage, which sparked the attention of U.S. Postal inspectors. In addition, he wired $200,000 of his proceeds from a Michigan bank to a Missouri brokerage account, which violates money laundering laws.
As part of his plea deal, he gave up $750,000, his Portage home, an Audi S4 sedan, a racing car and motorcycle.