Bothell-Based Employees Were Part Of Conspiracy To Help 'Unlock' Phones

A man was handed a prison sentence Thursday (September 16) for a $200 million scheme that reportedly involved AT&T employees based in Washington, according to the Associated Press (AP) via KOMO.

Reporters say 35-year-old Muhammad Fahd of Karachi, Pakistan connected with an AT&T call center employee in Bothell, Washington back in 2012. From there, Fahd bribed the employee and his coworkers into giving him credentials to "unlock" phones.

AP says the phones were removed from AT&T's network, and customers "could then buy cheaper service for their phones."

Fahd then had the workers install malware on the company's network so he could unlock the phones from Pakistan, prosecutors said. Two of the employees involved in the scheme were fired, they added.

The Pakistani man sold the illegal phone-unlocking service through online retailers, making millions off the venture and even bragging about his luxurious lifestyle, according to the U.S. Attorney's Office in Seattle. Prosecutors say the workers collectively got $922,000 during the scheme.

Over 1.9 million phones were unlocked during the conspiracy, AT&T's forensic analysis found. The company reported $200 million in losses due to severed service contracts and customers not being able to fully pay off their phones.

Fahd was arrested in Hong Kong in 2018 and extradited to the U.S. in 2019. He pleaded guilty to wire fraud conspiracy last year and was sentenced to 12 years in prison on Thursday.

The Pakistan man apologized to U.S. District Judge Robert Lasnik during the sentencing. Fahd was ordered to pay $200 million in restitution.

"Two AT&T workers who played smaller roles in the conspiracy were sentenced to probation. Last week Lasnik sentenced a third, Marc Sapatin, who was Fahd's main contact at the company, to 18 months," AP wrote.

Click here for more details on the case.