AT&T has filed a lawsuit against three former mobile phone sales representatives in Washington state on the accusation that the ex-employees helped in unlocking thousands of mobile phones.
The mobile phones that are the subject of the lawsuit were supposed to be bound to AT&T contracts. The former sales representatives allegedly unlocked the devices to be able to work with any other wireless carrier.
The ex-employees were accused of sneaking malicious software into the work computers of the AT&T store where they worked. The software were able to make automated requests that would unlock the devices, so that customers could use them outside a contract with AT&T. The scheme could have been done to be able to sell the unlocked devices for lower prices in the resale market.
According to lawyers representing AT&T, schemes to unlock devices by the bulk are not uncommon, with the defendants in the lawsuit participating in such a scheme.
Included in the lawsuit, aside from the three former AT&T employees, is Swift Unlocks, which is the company that the defendants were helping with the unlocking scheme. Swift Unlocks, based in Anaheim, California, offers services of unlocking different mobile phones in exchange for a fee.
The employees made enormous profits, but they apparently were not able to cover their tracks properly, leaving evidence that they were able to unlock a significant number of devices in only milliseconds. The evidence alerted the bosses of the employees, prompting the company to launch an investigation.
The lawsuit describes the unlocking scheme in detail, with the former sales representatives making a profit of between $10,000 and $20,000 in the illegal activity from Swift Unlocks before AT&T caught the employees doing the act.
While the lawsuit avoids mentioning criminal fraud, the complaint cites a law that could lead to an arrest of the former employees. If they are eventually arrested, the damages will be exorbitant. They would have to pay all the lost profits of the company from the sold mobile phones in addition to how much the former sales representatives earned for their participation in the unlocking scheme.
CNET requested comments from AT&T's lawyers and Swift Unlocks, but the news website's attempts to communicate were not returned.
