The man - Nicholas Woodhams of Kalamazoo, Mich. – ran an iPod repair business called iPod Mechanic, iMechanic and Pod Tradeuo, according to court documents. 

 

The 23-year-old man managed to get Apple to send him 9,075 iPod Shuffles. Woodhams entered real serial numbers on a company site destined to provide users with replacement iPods in case their devices malfunction during warranty. The man then sold the iPod Shuffles at $49 each. He made a profit of over $400,000. 

 

His lawyer, Randall Levine, said they have been negotiating with the government and are most likely to reach a resolution.  

 

"He is one of those guys who is computer-savvy. This is a very bright man who did not fully appreciate the seriousness of the situation," said Levine.  

 

According to the complaint filed in court, Woodhams ran this scam between March 2006 and October 2007. He sent more than 5,000 packages containing the stolen Apple hardware. 

 

Apple filed suit against Woodhams in June last year accusing the man that he "fraudulently manipulated the replacement program" and ripped the company of approximately $75,000.  

 

The feds asked U.S. District Court Judge Robert Bell to allow them to seize real estate and personal property of Woodhams which included a 2004 Audi and 2006 drag racer.