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‘Screwber’ scheme reaped $40M in bogus surge fares for hundreds of shady Uber drivers, feds say

‘Screwber’ scheme reaped $40M in bogus surge fares for hundreds of shady Uber drivers, feds say


This article was originally published on NY Post - US-News. You can read the original article HERE

These Uber drivers took passengers on a $40 million ride.

A pair of fraudsters sold hacked smartphones and fake apps — including one dubbed “Screwber” — to more than 800 Uber drivers as part of a scheme that conned customers into paying bogus “surge pricing” fares, federal prosecutors said Wednesday.

Eliahou Paldiel, 52, of Queens, and Carlos Arturo Suarez Palacios, 54, were arraigned Wednesday on federal wire fraud and money laundering charges in Brooklyn federal court.

The pair reaped more than $1.5 million for themselves out of $40 million in ill-gotten fares from the shady drivers, and even bragged about the upcoming flow of cash at the scheme’s outset in 2018, according to court documents.

“You know Screwber is like drugs .. once you get into it you’ll get withdrawals when you can’t get your fix,” Suarez wrote Paldiel, documents state.

More than 800 Uber drivers participated in a scheme that wrongfully reaped them $40 million, federal officials said. Christopher Sadowski
The scheme ended up depriving tens of thousands of drivers access to Uber, company representatives said. Christopher Sadowski

The scheme worked by having Uber passengers pay fraudulent “surge” fees — which the rideshare company charges when demand is higher in a certain geographic area — to drivers who’d effectively jumped the line to receive them, prosecutors said.

Paldiel and Suarez made that possible by selling drivers hacked smartphones for $600 a pop with a suite of three illicit apps, documents state.

Those apps included “Screwber,” a program that allowed drivers to see prospective Uber riders’ destinations and fares before they accepted the rides, according to the documents. The dishonest drivers could then “cherry-pick only the most profitable and lucrative rides offered to them,” documents state.

Another app called “Fake GPS” allowed drivers to fake, or “spoof,” their locations in Uber’s legit application so they would appear as if they were in an area with surging fares, the documents contend.

Demand for the pair’s criminal services was high — at several points, the feds saw long lines of drivers of cars with city Taxi & Limousine Commission plates waiting to meet with Paldiel, according to the documents.

When Paldiel sent a June 26 message to drivers offering help or a phone pickup at his home, investigators conducting surveillance saw more than 20 vehicles, the documents charge.

A spokesperson for US Attorney Breon Peace declined to comment on whether the 800 alleged cheating drivers — who are considered co-conspirators — soon will face criminal charges as well.

Feds saw drivers line up to meet Paldiel on several days, according to court documents. U.S. Department of Justice

“As alleged, the defendants sought to enrich themselves by corrupting the rideshare market at the expense of unsuspecting passengers and hardworking drivers who play by the rules,” Peace said in a statement.

Paldiel and Suarez pleaded not guilty to the charges and were released on $210,000 bonds.

The pair each face up to 20 years in prison, if convicted.

“The alleged fraud by 800 bad actors not only took money out of the pockets of hardworking drivers – it forced rideshare companies to further limit access to work for tens of thousands of TLC drivers,” said Josh Gold, an Uber spokesman.

David Do, the city’s Taxi & Limousine commissioner, said the dastardly drivers stole from both passenger and their fellow drivers.

“We are working closely with the FBI to identify any TLC drivers who used these illegal apps and ensure they never drive for hire in New York City again and, if feasible, recover any overcharges for those harmed,” Do said in a statement.

This article was originally published by NY Post - US-News. We only curate news from sources that align with the core values of our intended conservative audience. If you like the news you read here we encourage you to utilize the original sources for even more great news and opinions you can trust!

Read Original Article HERE



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