CHARLOTTE, N.C. – A Statesville retail store owner and his nephew are headed to federal prison after admitting to running a lucrative scheme trafficking in stolen and fraudulently obtained iPhones. Lal H. Mahtani, 58, and Vivek Ramesh Mahtani, 41, were sentenced yesterday by Judge Kenneth D. Bell for conspiring to move the hot devices across state lines and even overseas, authorities announced.
Lal Mahtani, the owner of New York Styles in Statesville, received the harsher sentence: 36 months in prison, followed by three years of supervised release. His nephew, Vivek Mahtani, will serve 18 months, also followed by three years of supervised release. The pair worked together from 2018 through February 2020, preying on vulnerabilities in the wireless retail supply chain.
The operation centered around purchasing new iPhones and other electronic devices from individuals who had acquired them through fraud – often targeting wireless stores. The Mahtanis knowingly bought these devices at significantly discounted prices, frequently still in their original sealed packaging. Lal Mahtani’s store served as a central hub for the illicit goods. The Secret Service and Charlotte Mecklenburg Police Department (CMPD) uncovered the scale of the operation during a joint investigation.
The scheme wasn’t limited to local sales. The Mahtanis used a shipping company to move the fraudulently obtained devices to buyers in California, Texas, New York, Georgia, and even as far as Hong Kong. Vivek Mahtani further expanded their reach by selling many of the phones to Cellport, a Charlotte-based business whose owners, Hamzeh Alasfar and Tayseer Alkhayyat, recently pleaded guilty to related charges.
Investigators tallied the damage: over 1,700 pounds of fraudulently obtained devices, translating to financial losses exceeding $1.5 million. The U.S. Attorney’s Office for the Western District of North Carolina, led by Dena J. King, secured the convictions. Special Agent in Charge Jason Byrnes of the USSS Charlotte Field Office and CMPD Chief Johnny Jennings jointly announced the sentencing, highlighting the effectiveness of the integrated partnership between the two agencies.
“This case demonstrates the success of our collaborative efforts to dismantle organized criminal groups impacting our community,” King stated. Assistant U.S. Attorney William T. Bozin prosecuted the case, bringing the Mahtanis to justice for their role in the sophisticated fraud. The Secret Service and CMPD plan to continue leveraging their combined resources to combat similar schemes and protect consumers from further losses.
Related Federal Cases
- Lal H. Mahtani, Transporting Fraudulently Obtained Phones, North Carolina 2020 · New Mexico
- Vivek Ramaswamy, Presidential Ambition, Georgia, 2023 · Texas
- Michael Smith, AI-Generated Song Fraud, New York, 2023 · Texas
- Amgen Pays $71M for Pushing Drugs Off-Label · Kentucky
- Amgen Inc, Pharmaceutical Misrepresentation, California 2024 · Kentucky
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
Get the grimiest stories delivered weekly. Subscribe free
Browse More
