Stop Cell Phone Trafficking

Phone Trafficker Guilty in Criminal Copyright Case: Historic First-Ever DMCA Conviction of Reseller

MIAMI, FL — (November 29, 2010) – Mohamad Majed was convicted this morning in federal court in Philadelphia of violating the Digital Millennium Copyright Act (DMCA) by trafficking in thousands of prepaid wireless telephones. Majed, who was arrested by FBI agents on November 22, 2009, pled guilty to illegally circumventing technological protections that are built into TracFone prepaid wireless devices to protect its copyrighted proprietary software.

Majed has been held in federal custody for more than a year, since the court determined he was likely to flee to his native Lebanon if released. Majed’s conviction today before U.S. District Judge Mary A. McLaughlin marks the first time a phone trafficker has been found criminally liable under the DMCA. Majed shipped several thousand prepaid wireless phones to co-conspirators in Michigan and Hong Kong.

Carlton Fields attorneys have represented wireless service providers in 127 lawsuits in federal courts throughout the U.S. against 323 companies and individuals involved in phone trafficking, obtaining nearly $400 million in civil judgment awards on behalf of their clients. The firm has also represented clients in litigation and regulatory proceedings involving application of the DMCA to wireless phone trafficking. ”The Majed conviction is critically important, because it lets traffickers know that their conduct now exposes them to criminal prosecution in addition to civil liability,” said Jim Baldinger, a Carlton Fields shareholder handling the firm’s DMCA-related matters.

Although Majed is the first trafficker to be convicted of violating the DMCA, other traffickers have been arrested in connection with civil lawsuits alleging violations of the DMCA. A Dallas based trafficker was sued and later arrested by U.S. Marshalls in Dallas in September 2008 for discovery violations. A Houston trafficker was sentenced to 57 months imprisonment by U.S. District Judge Melinda Harmon in Houston for violating an order prohibiting him from trafficking in wireless phones. A phone trafficker was arrested this summer by U.S. Marshals in Pittsburgh after entry of a $12.3 million judgment against him and he repeatedly ignored subpoenas and court orders compelling his appearance for a deposition. In August, an arrest warrant was issued by the U.S. District Court for the Southern District of New York for another trafficker in New York as a result of similar, ongoing discovery violations.

TracFone Launches Fourth Campaign Targeting Cell Phone Traffickers

TracFone Wireless Inc., America’s largest “No-Contract” cellular service provider with more than 15 million subscribers, today launched the fourth round of a new ad campaign aimed at putting an end to cell phone trafficking.

The new campaign specifically targets traffickers and “runners” of prepaid mobile phones. TracFone is continuing to lead the wireless industry in keeping prepaid service affordable and accessible for everyone, by protecting consumers from traffickers who steal their subsidies.

Now appearing in newspapers and on billboards across the U.S. — and on targeted online sites — the TracFone ads warn runners that the company is committed to enforcing its rights to the full extent of the law and will take legal action against anyone involved in the unauthorized resale of Tracfone, StraightTalk or NET10 mobile phones.

An example of the ads currently running.

The advertising campaign also provides an outlet for consumers to report activity related to cell phone trafficking, via e-mail or through an automated phone line.

Billboards are up in many locations across the U.S., including California, Florida and Texas  are some of the geographic locations where TracFone is getting their message out to stop cell phone trafficking. Ads like this are appearing as billboards, in newspapers, e-newsletters and online. The word among traffickers is that the ad campaign is making those out to make a quick buck think twice about trafficking cell phones.

TracFone has been relentless in pursuing phone traffickers. Carlton Fields attorney and TracFone representative James B. Baldinger said, “Cell phone trafficking is a nationwide concern for the wireless industry, and TracFone is committed to putting an end to this unlawful practice.”

TracFone currently has several lawsuits pending as part of its anti-trafficking campaign, including claims against companies based in Hong Kong and Honduras.  TracFone and its attorneys are actively pursuing other investigations that will likely result in more cases being filed in the near future. Review court cases here.

TracFone Launches Third Ad Campaign Targeting Cell Phone Traffickers

TracFone Wireless Inc., the largest U.S. provider of prepaid mobile phone services, unveiled the third round of a new ad campaign aimed at putting an end to cell phone trafficking. The new campaign specifically targets traffickers and “runners” of prepaid mobile phones. TracFone is continuing to lead the wireless industry in keeping prepaid service affordable and accessible for everyone, by protecting consumers from traffickers who steal their subsidies.

Now appearing in newspapers and on billboards across the U.S. — and on targeted online sites — the TracFone ads warn runners that the company is committed to enforcing its rights to the full extent of the law and will take legal action against anyone involved in the unauthorized resale of Tracfone, StraightTalk or NET10 mobile phones.

The advertising campaign also provides an outlet for consumers to report activity related to cell phone trafficking, via e-mail or through an automated phone line.

Billboards are up in many locations across the U.S. Connecticut, Florida, Georgia, Indiana, Massachusetts, New Jersey, Pennsylvania, Texas and Virginia are some of the geographic locations where TracFone is getting their message out to stop cell phone trafficking. Ads like this are appearing as billboards, in newspapers, e-newsletters and online. The word among traffickers is that the ad campaign is making those out to make a quick buck think twice about trafficking cell phones.

This is an example of the TracFone print ad.

TracFone Launches New Ad Campaign Targeting Cell Phone Traffickers

TracFone Wireless Inc., the largest U.S. provider of prepaid mobile phone services, unveiled the second round in a new ad campaign aimed at putting an end to cell phone trafficking. The new campaign specifically targets traffickers and “runners” of prepaid mobile phones.

Now appearing in newspapers and on billboards across the U.S. and on targeted online sites, the TracFone ads warn runners that the company is committed to enforcing its rights to the full extent of the law and will take legal action against anyone involved in the unauthorized resale of Tracfone or NET10 mobile phones.

The advertising campaign also provides an outlet for consumers to report activity related to cell phone trafficking, via e-mail or through an automated phone line.

To view a full size version of the ad, click here.

Below is a view of a billboard from one of the many locations in California, Florida, Michigan, New York, Pennsylvania and Texas where TracFone is getting the message out about the issues of cell phone trafficking. Ads like this are appearing across the U.S. in targeted metro locations identified by TracFone as hotspots for trafficking. Word among traffickers is that the ad campaign is making those out to make a quick buck think twice about trafficking cell phones.

Stop Cell Phone Trafficking

TracFone and other prepaid mobile phone service providers have recently experienced a sharp rise in the sale of prepaid mobile phones that are never activated on their networks. The company believes that traffickers are acquiring large quantities of prepaid mobile phones with the intent to take those subsidies for themselves by unlocking, altering and reselling the phones. After unlocking these prepaid mobile phones, traffickers either ship them overseas or sell them in the U.S. This activity causes tremendous harm to consumers, who are the intended beneficiaries of the subsidies that are diverted by the traffickers.

Cell phone “runners” seen with hundreds of prepaid mobile phones.

U.S. COURT SENDS INTERNATIONAL PREPAID MOBILE PHONE TRAFFICKER TO PRISON FOR 57 MONTHS

TracFone Wireless Inc., the largest U.S. provider of prepaid mobile phone services, says today’s sentencing of an international trafficker of prepaid mobile phones to 57 months in federal prison is an important milestone in the industry’s battle against the bulk prepaid phone purchasing scheme throughout the U.S., an activity that includes altering the phones’ proprietary software, repackaging the devices (often in counterfeit packaging) and then reselling them domestically and abroad to unsuspecting customers.

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First Criminal Conviction of International Prepaid Mobile Phone Trafficker

On May 16, 2008, Muhammad Mubashir, 27, of Sugar Land, Tex., pleaded guilty before Judge Melinda Harmon of the U.S. District Court for the Southern District of Texas to charges of criminally disobeying a federal court order prohibiting him from continuing to purchase, tamper with or export prepaid mobile phones. This case marks the first-ever criminal conviction related to prepaid mobile phone trafficking.

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