Southfield man pleads guilty in $28 million iPhone fraud scheme
SOUTHFIELD, Mich. (FOX 2) - A Southfield man pleaded guilty this week for his role in a $28 million iPhone fraud scheme.
Authorities say that Delano Bush, 34, and others used personal information of other people to obtain iPhones. Federal officials said they would buy personal information online, and use it to open AT&T accounts.
The scammers are accused of adding themselves as "authorized users" on the accounts, so they could upgrade the service lines at Apple stores.
7 from Michigan charged in multi-state $28 million iPhone fraud scheme
The scammers are accused of completing more than 26,000 fraudulent transactions, resulting in a loss of more than $28 million dollars.
They are also accused of gaining access to AT&T computer systems by stealing RSA tokens and employee IDs, so they could impersonate employees. They then allegedly began swapping broken tablets with AT&T tablets, and stealing computer towers from AT&T stores. Corrupt employees allegedly helped with this scheme.
This went on from as early as June 2017 and through at least September 2019, and they allegedly completed more than 26,000 fraudulent transactions, resulting in a loss of more than $28 million dollars.
Bush is the first person to plead in the case.
He faces a statutory maximum penalty of 20 years imprisonment on the charge of conspiracy to commit wire fraud. Bush’s plea agreement also requires him to pay a minimum of $1.5 million in restitution to AT&T.
Bush will be sentenced on April 25, 2024.
"Today’s guilty plea marks a significant event in a years-long investigation and prosecution. As this case shows, identity theft is constantly evolving, and fraudsters continue to find new ways to use and abuse their victims’ personal information," said U.S. Attorney Dawn Ison.