His fraudulent business venture involved purchasing iPods at wholesale prices and purportedly reselling them at higher than market prices to a department store chain in Pimstein’s native Chile. In reality, he was pulling a Madoff; enticing investors with promises of annual returns of up to 36 percent, while pocketing their money and paying their returns with money from other investors.
Pimstein pleaded guilty to a dozen wire-fraud counts in December and, along with a hefty 17 year prison sentence handed down by a federal judge on Friday, he must also turn over 5,540 of the iPods and an investment account totaling $138,522. Of course, this amount pales in comparison to the combined $40 million lost by at least 146 of the scheme’s investors.
And so justice is served, and yet another Apple-abusing criminal is behind bars.