BOSTON – Kevin Johnson, 26, of New York City, is headed to federal prison for 70 months after masterminding a sophisticated scheme to steal and resell over $330,000 worth of new cell phones. The brazen operation, which spanned multiple states, wasn’t deterred even by his initial arrest and release pending trial – Johnson simply resumed the fraud, adding another $30,000 in AT&T phones to his haul.
The scheme, operating from at least January 2014 through October 2014, relied on impersonation and exploited vulnerabilities within T-Mobile’s system. Johnson, along with co-conspirators Jimmy Phan, David Hul, and Curtis Peebles, used illegally obtained dealer codes to add fraudulent authorized users to existing T-Mobile accounts. This allowed them to bypass security measures and order new phones under false pretenses.
“Runners,” including Lee Tran, were then dispatched to T-Mobile stores across the country – Massachusetts, Nevada, New Hampshire, New York, Pennsylvania, Rhode Island, New Jersey, and Florida – armed with real or fabricated IDs. They posed as legitimate customers and walked away with the newly acquired devices. The phones were handed off to Phan, Hul, and Peebles, who paid the runners a cut before Johnson resold them to other conspirators for distribution both domestically and internationally.
Despite T-Mobile’s attempts to notify customers of account changes, the damage was often already done. Affected customers frequently didn’t discover the fraudulent activity until after the phones had been stolen and resold, leaving them helpless and financially vulnerable. The U.S. Secret Service’s Boston Field Office, alongside Homeland Security Investigations, led the investigation that ultimately brought Johnson and his crew to justice.
This isn’t Johnson’s only punishment. Senior U.S. District Court Judge Mark L. Wolf also sentenced Johnson to three years of supervised release and ordered him to pay restitution, the amount of which will be determined at a later date. Judge Wolf previously handed down sentences to Hul (21 months) and Peebles (18 months) for their roles in the scheme. Phan and Tran are scheduled to be sentenced May 9.
Acting United States Attorney William D. Weinreb emphasized the collaborative effort that led to the conviction. “This case demonstrates the importance of cooperation between federal agencies and private companies like T-Mobile and AT&T,” he stated. Assistant U.S. Attorney Seth B. Kosto, of the Cybercrime Unit, prosecuted the case, highlighting the increasing threat of technologically-enabled fraud and the dedication of law enforcement to combat it. The Grimy Times will continue to follow this case as sentencing for the remaining defendants approaches.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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