Cell phone buy back company ordered to reimburse consume - CBS46 News

Cell phone buy back company ordered to reimburse consumers $42 million

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Two years after CBS46 first exposed Cash For iPhones and their questionable business practices, a federal judge in Atlanta has ordered the now defunct cell phone buy back company to reimburse consumers more than $42 million for taking their phones and failing to pay them in full.

Anna Burns works for the Federal Trade Commission and said the company’s former owner, David Kruchin, made off with millions in just five years and now has a warrant out for his arrest. Kruchin is accused of ripping off more than 100 Georgians and tens of thousands of consumers nationwide.

“He cleared out what bank accounts we did not know about. We had an asset freeze and he cleared out other bank accounts and turned all that money into gold bars and fled. We know he was on a flight to China and we currently think he’s either in Dubai or Russia,” Burns said.

Malissa Marfione was one of his victims. She was promised $217 to trade in her old cell phone, but Cash for iPhones sent her a check for only $31.

“I think what he did was criminal,” Marfione said. “He needs to pay these people back. I think it’s ridiculous what he’s done. And taking money from people, he shouldn’t be able to do that and just get away with it,” Marfione said.

The Federal Trade Commission said if Kruchin re-enters the country he will be arrested.    

“They are also banned from continuing in this line of business, and as well as making deceptive statements to consumers, and that is a ban that is permanent so it never goes away, so he’s out of this business forever,” Burns said.

Plus, authorities plan to seize Kruchin’s assets in Nevada where the company was located in an attempt to make consumers whole. 

Cash For iPhones has seven days to pay back $42 million.

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