One wonders how Apple tripped upon this scheme: a Kalamazoo-area iPod repairman figured out how to get iPod manufacturer Apple, Inc. (NASDAQ:AAPL) to repair their Shuffle model devices for free under valid warranties. Were there just too many broken Shuffles being shipped back to Apple for warranty repairs from the Kalamazoo/Portage area? 

The accused apparently figured out a range of valid warranty numbers for the audio players; they would enter a valid warranty number when submitting a broken but out of warranty Shuffle to Apple, receiving a replacement device in exchange and then bill the client for a “repair” of the Shuffle. The scheme was lucrative as the so-called repairman had amassed much more than a half million dollars from the process and employed multiple people to assist with the mailing and receiving the Shuffles.

The scammer has been charged with fraud and money laundering, according to a report by the Boston Globe, and is cooperating with authorities.