Federal prosecutors are charging two men involved in an alleged scheme that reaped them $1.5 million through fraudulent “surge pricing.”
Federal prosecutors announced Wednesday, according to the New York Post, that Eliahou Paldiel, 52, of Queens, and Carlos Arturo Suarez Palacios, 54, were arraigned in Brooklyn federal court on charges of wire fraud and money laundering.
The prosecutors allege that Paldiel and Suarez sold hacked smartphones loaded with illicit apps, including one called “Screwber,” to more than 800 Uber drivers. The apps allowed drivers to manipulate Uber’s software by viewing potential riders’ destinations and fares before accepting rides by faking their locations in areas with higher demand or surge pricing.
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