Cellphone Retailer Prosecuted for Fraud

The owner of a mobile phone retail shop chain in Brooklyn, New York has pleaded guilty to charges of theft over a US$2 million scheme to defraud his customers. Mayer Vaknin, the owner of Cellular Island, pleaded guilty to conspiracy to commit mail and wire fraud, and identity theft. Cellular Island has eight retail stores in the city, under that brand name as well as the Cellular Tropics brand.

Vaknin's attorney, Harold Levy of Brooklyn, would only say that his client had admitted his guilt, and would make no further comment.

According to the investigation by the police, Vaknin used the personal information of customers to order extra handsets and accounts, which were then resold in his stores. In a second fraud, he would report that customers had ordered service upgrades for their T-Mobile accounts, earning him additional commissions.

Vaknin faces up to 20 years in jail when sentenced, and has already agreed to forfeit a Miami property worth about US$500,000."

Posted to the site on 10th July 2006