{"id":51599,"date":"2022-12-12T19:23:23","date_gmt":"2022-12-13T03:23:23","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=51599"},"modified":"2022-12-12T19:54:10","modified_gmt":"2022-12-13T03:54:10","slug":"former-mobile-phone-store-owner-sentenced-to-10-years-in-prison-for-illegally-unlocking-cellphones","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=51599","title":{"rendered":"Former Mobile Phone Store Owner Sentenced to 10 Years in Prison for Illegally Unlocking Cellphones \u2014 Earned $25 Million"},"content":{"rendered":"

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0<\/strong><\/span><\/p>\n

\"\"Federal officials stated that a former owner of a T-Mobile retail store in Eagle Rock was sentenced Friday to 12 years in federal prison for his multimillion-dollar scheme<\/span><\/p>\n

He stole T-Mobile employee credentials and illegally accessed the company\u2019s internal computer systems to illicitly \u201cunlock\u201d and \u201cunblock\u201d cell phones.<\/span><\/p>\n

A previously filed indictment indicated that Khudaverdyan earned about $25 million from doing so.\u00a0<\/span><\/p>\n

United States District Judge Stephen V. Wilson sentenced Argishti Khudaverdyan, 44, of Burbank.\u00a0 Judge Wilson also ordered him to pay $28.4 million in restitution.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Khudaverdyan ran a multi-year scheme that illegally unlocked and unblocked cellphones, which generated tens of millions of dollars in criminal proceeds. <\/span><\/p>\n

\"\"During this time, most cellphone companies \u2013 including T-Mobile \u2013 \u201clocked\u201d their customers\u2019 phones to be used only on the company\u2019s network until the customers\u2019 phone and service contracts had been fulfilled. <\/span><\/p>\n

If customers wanted to switch to a different carrier, their phones had to be \u201cunlocked.\u201d Carriers also \u201cblocked\u201d cell phones to protect consumers in the case of lost or stolen cell phones.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \"\"From August 2014 to June 2019, Khudaverdyan fraudulently unlocked and unblocked cell phones on T-Mobile\u2019s network and the networks of Sprint, AT&T, and other carriers. <\/span><\/p>\n

Removing the unlock allowed the phones to be sold on the black market and enabled T-Mobile customers to stop using T-Mobile\u2019s services and thereby depriving T-Mobile of revenue generated from customers\u2019 service contracts and equipment installment plans.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Khudaverdyan advertised his fraudulent unlocking services through brokers, email solicitations, and websites. He falsely claimed the fraudulent unlocks he provided were \u201cofficial\u201d T-Mobile unlocks.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \"\"From January 2017 through June 2017, Khudaverdyan and a former business partner were also co-owners of Top Tier Solutions Inc., a T-Mobile store in Eagle Rock Plaza. <\/span><\/p>\n

However, after T-Mobile terminated Khudaverdyan\u2019s contract in June 2017 based on his suspicious computer behavior and association with the unauthorized unlocking of cell phones, Khudaverdyan continued his fraud.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To gain unauthorized access to T-Mobile\u2019s protected internal computers, Khudaverdyan obtained T-Mobile employees\u2019 credentials through various dishonest means, including sending phishing emails that appeared to be legitimate T-Mobile correspondence and socially engineering the T-Mobile IT Help Desk. <\/span><\/p>\n

Khudaverdyan used the fraudulent emails to trick T-Mobile employees to log in with their employee credentials, so he could harvest the employees\u2019 information and fraudulently unlock the phones.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In total, Khudaverdyan and others compromised and stole more than 50 different T-Mobile employees\u2019 credentials from employees across the United States. <\/span><\/p>\n

They unlocked and unblocked hundreds of thousands of cell phones during the years of the scheme.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Khudaverdyan obtained more than $25 million for these criminal activities. He used these illegal proceeds to pay for, among other things, real estate in Burbank and Northridge.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In a sentencing memorandum, federal prosecutors argued that Khudaverdyan was \u201ca sophisticated fraudster with no remorse for his crimes. <\/span>He caused millions of dollars in losses to wireless carriers while furthering the trafficking of lost and stolen cell phones.\u201d<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n

\"tufted<\/p>\n

After a four-day trial, a federal jury on Aug. 1 found Khudaverdyan guilty of 14 felonies: one count of conspiracy to commit wire fraud, three counts of wire fraud, two counts of accessing a computer to defraud and obtain value, one count of intentionally accessing a computer without authorization to obtain information, one count of conspiracy to commit money laundering, five counts of money laundering, and one count of aggravated identity theft.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Alen Gharehbagloo, 43, of La Ca\u00f1ada Flintridge, a co-defendant and a former co-owner of Top Tier Solutions Inc., plead guilty on July 5 to three felonies: conspiracy to commit wire fraud, accessing a protected computer with intent to defraud, and conspiracy to commit money laundering. <\/span><\/p>\n

His sentencing hearing is scheduled for Feb.13.<\/span><\/p>\n

\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 The U.S. Secret Service\u2019s Cyber Fraud Task Force (CFTF) and IRS Criminal Investigation investigated this matter.\u00a0<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Assistant U.S. Attorneys Lisa E. Feldman and Andrew M. Roach of the Cyber and Intellectual Property Crimes Section prosecuted this case.<\/span><\/p>\n

\n","protected":false},"excerpt":{"rendered":"

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