Michigan Man Charged With Fraud in iPod Scam

Federal authorities in western Michigan say Apple Inc. was the victim of a real shuffle.

Prosecutors filed fraud and money laundering charges against a 23-year-old Kalamazoo-area man who is accused of acquiring more than 9,000 iPod Shuffle music players.

They say Nicholas Woodhams, through trial and error, entered serial numbers into Apple's Web site to get replacements for supposedly defective iPods. The government says he turned around and sold thousands of newly acquired Shuffles for $49 each.

Woodhams repaired iPods and was aware of Apple's warranty program.

His lawyer, Randall Levine, said Thursday Woodhams is cooperating and "negotiating a resolution" with prosecutors. A lawsuit filed last year by Cupertino, Calif.-based Apple is pending.