Defendants Sold Subscriptions for "Screwber" Application in Rideshare Scheme

"Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Eliahou Paldiel and Carlos Arturo Suarez Palacios (Suarez) with wire fraud and money laundering conspiracies relating to a wide-ranging scheme in which the defendants sold hacked smartphones and fraudulent applications to more than 800 rideshare drivers (Driver Co-conspirators). The applications enabled the Driver Co-conspirators to “spoof” GPS locations to fraudulently obtain “surge” fees and to otherwise manipulate legitimate rideshare applications to enrich themselves to the detriment of riders, law-abiding drivers and rideshare companies. If convicted, the defendants face up to 20 years in prison on each of the two counts."