Man sentenced to 12 years in $200 million phone-fraud scheme

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Man sentenced to 12 years in $200 million phone-fraud scheme
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A Pakistan resident has been sentenced to 12 years in prison for a conspiracy to “unlock” phones from AT&T's network, a scheme that the company says cost it more than $200 million.

FILE - In this Oct. 24, 2016, file photo, the AT&T logo is positioned above one of its retail stores, in New York. A Pakistan resident has been sentenced on Thursday, Sept. 16, 2021, to 12 years in prison for a conspiracy to"unlock" phones from AT&T's network, a scheme the company says cost it more than $200 million. Muhammad Fahd, 35, of Karachi, recruited an employee of an AT&T call center in Bothell, Wash.

That allowed the phones to be removed from AT&T’s network, even if customers had not finished paying for the expensive devices or their service contracts had not expired. The customers could then buy cheaper service for their phones. He paid three AT&T workers $922,000 from 2012 to 2017 before he was arrested in Hong Kong in early 2018. More than 1.9 million phones were unlocked as part of the conspiracy, AT&T's forensic analysis found.

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