Sioux City Man Guilty Of Mail Fraud
United States Attorney Brendan V. Johnson announced that Darin Moran, age 36, of Sioux City, Iowa appeared before U.S. District Judge Karen E. Schreier on May 21, 2013 and pled guilty to Count I of the indictment that charged him with Mail Fraud. The maximum penalty upon conviction is 20 years in prison, a $250,000 fine, or both.
From November 1, 2007 thru October 31, 2010, Moran was a certified repair technician working for Amerikit, an Apple service provider in South Dakota. In that capacity, Moran had particular knowledge and access to the Apple warranty process. This included Apple at times sending new parts that could be used in warranty-covered repairs. Moran utilized three separate methods, all resulting in Moran receiving computers and replacement parts from Apple free of charge. At times, he would make warranty claims on behalf of a personal side business he started, D & M Sales, thereby obtaining free parts that he used in his personal business. At times, he obtained junk parts through internet sources, then submitted fictitious warranty claims for those parts. Finally, at times, Moran submitted warranty claims to Apple for junk parts that he knew were not covered under warranty, such as parts damaged by liquid. He concealed the nature of the damage, and when necessary, replaced serial numbers to submit the parts as warranty-covered damage.
As part of his related scheme, Moran made and caused to be made hundreds of mailings, often via Federal Express. Each of these particular mailings involved parts Moran sent after affixing false serial numbers in an effort to intentionally deceive Apple into determining that they were warranted parts.
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Kevin Koliner.
A presentence investigation was ordered, and a sentencing date was set for August 12, 2013. The defendant was released on bond pending sentencing.