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Cell-phone chain owner admits $2 million fraud - Who's next?

The owner of a chain of cell-phone stores in Brooklyn admitted Friday he illegally made $2 million through two schemes, using credit and other information provided by customers, officials said.

Mayer Vaknin, 43, the owner of Cellular Island, pleaded guilty in U.S. District Court in Brooklyn to conspiracy to commit mail and wire fraud, and identity theft. Most of the eight Cellular Island stores are located in or around the Fulton Street Mall in Downtown Brooklyn.

Vaknin's attorney, Harold Levy of Brooklyn, would only say that his client had admitted his guilt, and he had no further comment.

Assistant U.S. Attorneys Jeff Rabkin and Jed Davis, who prosecuted the case, declined to comment.

According to an investigation by the Secret Service and State and New York City police, the schemes depended on Vaknin's having credit and cell-phone information and Social Security numbers of customers, plus a subcontract to sell T-Mobile phones and services.

In one of the schemes, Vaknin defrauded 900 customers by having associates use the customers' credit and other information to purchase 1,940 T-Mobile cell phones. Vaknin then sold the phones in his stores, officials said.

In the second scheme, Vaknin gained illegal commissions and bonuses from T-Mobile by falsely reporting that the customers had requested service upgrades, service plans or contract renewals, officials said. T-Mobile has canceled the charges made to the victims' accounts, officials said.

Vaknin could face up to 20 years in prison when he is sentenced by U.S. District Court Judge David Trager.

In addition, Vaknin has agreed to forfeit to the federal government an apartment in the South Beach section of Miami worth $500,000 and a Hummer H2 worth $70,000, officials said.

http://www.newsday.com/business/ny-bzcell084810176jul08,0,5538223.story?coll=ny-business-print