TV Reporter Exposes Shady iPhone Resellers

April 24, 2014

On the heels of Apple executives reporting the company sold 43 million iPhones during the last quarter, a Colorado entrepreneur is using homeless people and Apple’s stores to supply his iPhone reselling operation. A KUSA-TV report says the scheme was uncovered at the Cherry Creek (Denver) Apple store, and leaves the homeless and other down-and-outers holding monthly cellular contracts they can’t afford to pay. According to the report, the resellers drive the streets looking for people who might need quick cash, offer them a deal, and then drive them to an Apple store. Inside, the resellers provide cash for the recruits to purchase one or more iPhones tied to a cellular carrier. The recruits are told they can easily cancel the monthly cellular contracts, leaving them with no liability. In exchange for their help purchasing the iPhones, the recruits receive $100 or more. Only later do the recruits discover that they are on the hook for the monthly charges or contract cancellation charges. KUSA reporter Jeremy Jojola identified the resellers as two men from Beverly Hills (Calif.) operating a company that offers unlocked iPhones, and said they seemed to be working with one particular Cherry Creek store employee. However, Jojola didn’t speculate on whether that employee was part of the resellers’ scheme. Jojola did say the number of people he saw at the Cherry Creek store indicated to him that employees must have been aware of the resellers’ activities. Denver police have classified the situation as a civil matter and have declined to investigate the scheme Jojola uncovered.

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