A complex scheme involving stolen credit cards, music downloads and their royalties has ended with the arrest and sentence of ten people. Craig Anderson, 24, was sentenced to four years and eight months in prison, while the others received sentences ranging from community service to two years in prison. Both iTunes and Amazon were affected and lost between $1.2 and $1.6 million.
The scheme involved Anderson uploading music to iTunes and Amazon using a third party digital distributor such as TuneCore, CD Baby, and SongCast. In an attempt to hide their scheme, they limited their download purchases to about $16. They also used software called Hide My IP.
iTunes started to take notice when tracks from Denver White (known as DJ Denver) and other unknown artists started to receive a large number of downloads. White told police he was swindled by Anderson and was cleared of charges of conspiracy to defraud.