How the scam worked was simple. If a consumer returned an Apple product for repair and it was not covered under warranty the consumer was charged a fee for the replacement of parts and the work done in replacing the parts.

The reseller then found the serial number of an Apple device that was covered under warranty and then submitted a claim to Apple. The claims, which ChannelNews has been told came to over $2.6 million, were against customers that the reseller already had on their database.

ChannelNews does know the name of the reseller and the executives involved.

Complicating the issue is that since the scam was uncovered the holding Company for the reseller group has been sold with the new owners now contemplating legal action against the original owners of the group.

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