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iPhone 4 Prototype Finder Gets Probation 334

think_nix writes "Brian Hogan, who found an iPhone 4 prototype last year which was sold to Gizmodo for $5,000, has been sentenced to one year of probation, 40 hours of community service, and a $250 fine. The District Attorney's office was asking for jailtime."
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iPhone 4 Prototype Finder Gets Probation

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  • Justice is served (Score:5, Informative)

    by infernalC ( 51228 ) <(moc.elgoog) (ta) (nollem.wehttam)> on Wednesday October 12, 2011 @09:23AM (#37689904) Homepage Journal

    The right thing to do with something that isn't yours is not to pick it up and sell it. Duh. He will learn a lesson from this.

    • Re: (Score:2, Interesting)

      by Anonymous Coward

      If it was just another phone that was stolen, would the punishment be as severe? I dont think so.

      • Yes, a Nokia 5160 would have had a different result, you are right. Congrats on the big win, there.

      • If it was just another phone that was stolen, would the punishment be as severe? I dont think so.

        If it had been just another phone, he would not have been able to sell it for $5,000. IANAL but it seems the penalty for selling stolen goods should be proportional to the value of those goods.

        • by vlm ( 69642 )

          it seems the penalty for selling stolen goods should be proportional to the value of those goods.

          That would make life very tough on brick and mortar store owners, if I could walk out of the store with anything I want under a dollar... Hmm steal a $1 candybar and get 1/5000th which would be a fine of one nickel, 28 seconds of community service, and an hour and 45 minutes of probation.

          The problem with a micro transaction economic system is its likely to be extended to a micro transaction justice system, where this kind of punishment might actually happen.

          • The penalty should be a MULTIPLE of the value of the goods, thus encouraging you to actually earn the price of the goods and not just steal them. This is, after all, the market-based way.

            So for a $1 candy bar, $10 worth of penalty seems appropriate. For a $200 electronic device, $2000 dollars penalty, etc.

            And the same for the top end of things. For $20,000,000 worth of environmental destruction, $200,000,000 fine.

        • by mini me ( 132455 )

          IANAL but it seems the penalty for selling stolen goods should be proportional to the value of those goods.

          How do you determine the worth of the goods? It was worth $5,000 to a press agency. To Apple, it could have been worth millions of dollars to keep it under wraps. To me, maybe a few hundred dollars; I was able to buy the exact same thing about a month later for no more than that.

    • by ccguy ( 1116865 )

      The right thing to do with something that isn't yours is not to pick it up and sell it. Duh. He will learn a lesson from this.

      Well, did he pick it up, remove the SIM card so the owner couldn't just call it and ask about it? Or did he keep it at home waiting for the owner to call and after a few days decided to sell it?

      • Re:Justice is served (Score:4, Interesting)

        by jeffmeden ( 135043 ) on Wednesday October 12, 2011 @09:51AM (#37690356) Homepage Journal

        The right thing to do with something that isn't yours is not to pick it up and sell it. Duh. He will learn a lesson from this.

        Well, did he pick it up, remove the SIM card so the owner couldn't just call it and ask about it? Or did he keep it at home waiting for the owner to call and after a few days decided to sell it?

        Completely not the point. (make way for the car analogy!) Hey I found this sweet car, and the owner never once showed up in the few days that I waited for him to claim it. It's totally mine. I wonder why so many people abandon cars at the airport, anyway? Oh well, finders keepers!

        Most jurisdictions require public notification of found goods, as well as a 6 month waiting period. Neither of which this guy even came close to adhering to.

      • by smash ( 1351 )
        Steve Jobs called him about it, and he told steve he wasn't going to give it back.
      • by bkaul01 ( 619795 )

        Well, did he pick it up, remove the SIM card so the owner couldn't just call it and ask about it? Or did he keep it at home waiting for the owner to call and after a few days decided to sell it?

        Doesn't matter. The proper approach is to turn it in to the police department, just as if you'd found cash or anything else lying around. If the original owner doesn't claim it within a set time (30-60 days IIRC), they'll call you back and it's yours.

    • Re: (Score:2, Troll)

      by Shotgun ( 30919 )

      As a hobby, my dad used to go over the school playgrounds and athletic fields with a metal detector. He had some success finding rings and coins. He made some attempts to contact owners of a couple school rings that had identification marks, but ended up selling most of the stuff to a local jeweler for basically scrap prices. It was a popular hobby in the late 70's to early 80's.

      I don't think you're sentiment is as cut and dry as you think.

      • But as you said, he made an attempt to contact the owner if it had some type of identification on it. I found a cell found outside a local bar once and called the number listed as Home in the contacts. Eventually the person was able to get the phone back from me. From what I recall when this story first appeared, Hogan never made an attempt to get the property back to it's owner. Though I could be wrong.
    • Here's the lesson (Score:2, Insightful)

      by Anonymous Coward

      If you spot a lost cell phone, ignore it. Don't touch it, don't look at it, don't ponder it, and above all, don't be the one who calls attention to it. Just keep moving. In today's environment of runaway government, chances are high you will be punished for trying to do right, rather than rewarded as one should be.

      I'm not just talking about lost cell phones, of course. Unless it is a life-or-death situation, or somebody is likely to get hurt, the smart policy is to stay the hell out of any situation that is

      • by jo_ham ( 604554 )

        If he had handed the phone in to the police he wouldn't be in the mess he's in (wrt a conviction). He didn't do that - he sold the phone on to a third party very publicly.

        People finding lost phones are in no more danger than they were before, assuming they actually return it or hand it in to the police in the absence of any information on who the thing belongs to.

      • by jeffmeden ( 135043 ) on Wednesday October 12, 2011 @10:15AM (#37690710) Homepage Journal

        If you spot a lost cell phone, ignore it. Don't touch it, don't look at it, don't ponder it, and above all, don't be the one who calls attention to it. Just keep moving. In today's environment of runaway government, chances are high you will be punished for trying to do right, rather than rewarded as one should be.

        Holy tinfoil hat... Michelle Bachmann, is that you? This case is not even remotely about someone trying to do the "right thing", by any stretch of the imagination. A guy found some lost property and immediately tried to sell it, which in almost every sane, law abiding nation, is a CRIME. He got punished. I think the protest down at the Crymeafuckin river is missing you sorely, why don't you get back to it?

      • by PIBM ( 588930 )

        Your name is well deserved!

      • I actually found a "cell phone" (where I come from they're called mobile phones) on the side of of the road in the grass on Monday whilst cycling, I took it because I thought someone had just dumped an old scratched mobile they didn't want anymore and I could salvage spare parts from it, but it turned out to still work (albeit missing the battery) and the SIM in it was on a montly contract instead of an anonymous pay-as-you-go type, so Tuesday I took it to the local mobile phone shop of the phone network of
    • by smash ( 1351 )

      He even got a call from Steve asking him "OK, you've had your fun, can you please give me my phone back now" after he ran an article on it (or words to that effect).

      He told Steve to go jump.

      Steve didn't like that.

      And to be fair, if i had some property stolen, located someone who found it, and it was quite obviously mine, i'd take them to the cleaners as well.

      • by smash ( 1351 )
        I meant to put in that last sentence "and refused to give it back when asked".
    • What happened to Gizmodo? Were they punished as well in any way?

      As far as I know buying stolen goods is also a crime.

    • The right thing to do with something that isn't yours is not to pick it up and sell it. Duh. He will learn a lesson from this.

      Not sure that's the lesson here: They were paid $5000 for the phone, and only had to pay a fine of $250 each.
      That's a cool $4500 profit.

      Even if you take into account the 40 hours community service each that the 2 guys have to do - they are still earning a pretty decent rate of $60 an hour.

      I guess crime really does pay - even if you are caught.

  • by LWATCDR ( 28044 ) on Wednesday October 12, 2011 @09:24AM (#37689920) Homepage Journal

    If you find a cell phone that doesn't belong to you in a bar and you turn it in to the bar owner, or you turn it into the police, or you turn it into a carrier store that the phone came from you are a finder.
    If you find cell phone that doesn't belong to you and you sell it you are a thief.

    • What do you do if you find four $100 bills lying on the sidewalk?

      • You should leave it alone, same as if you find someone's wallet on a park bench.

        I heard in Japan this actually happened; that someone left his wallet full of money on a bench and came back the following day to collect it, and found it had been left undisturbed despite lots of people frequenting the park.

        • As someone who lives in Japan, that doesn't surprise me one bit. MOST Japanese people are extremely honest, they may borrom your umbrella from the stand at the convenience store if it's pouring out but they'll return it on the next day.

          • by Lumpy ( 12016 ) on Wednesday October 12, 2011 @09:45AM (#37690232) Homepage

            So I get to suffer in the rain instead of them... how dishonorable.

          • >>As someone who lives in Japan, that doesn't surprise me one bit. MOST Japanese people are extremely honest, they may borrom your umbrella from the stand at the convenience store if it's pouring out but they'll return it on the next day.

            A lot of the hotels in Japan have spare umbrellas in the stands by the front door for you to take, on an honor system of returning it later.

          • by l3v1 ( 787564 )
            How nice :) They leave you to get wet, but you'll get back the umbrella next day ? :) Awesome :)
          • by hduff ( 570443 )

            As someone who lives in Japan, that doesn't surprise me one bit. MOST Japanese people are extremely honest, they may borrom your umbrella from the stand at the convenience store if it's pouring out but they'll return it on the next day.

            And if they borrow your umbrella when it's raining, what are you supposed to use? That does not sound "extremely honest" to me. An honest person would 1)ask before borrowing and 2) if given permission, always return it.

            • The other umbrella in the stand. They (stores, public businesses) have spares in the stand for just such purpose, as they may not get the one borrowed back tomorrow, but they'll get one back tomorrow even if its a different one or from some other store.

        • In the post-9/11 world you should assume it's a terrorist plot of some kind. Call Homeland Security immediately. They will cordon off the park, blow up the wallet, set up check points, and do body scans on everybody going in or out of the park.
          • Like that electric toy robot they found in some street, I forget the details but the police were called because some kid left his toy robot in the street and they got the bomb squad out there to detonate it.

          • Yup. Or like my friends Dad who was selling the contents of his apartment as he was leaving town for another job. The FBI showed up and questioned him because one of the neighbors thought he was selling his stuff 'suspiciously' and called the FBI (he was Indian).
      • by LWATCDR ( 28044 )

        Actually you should turn it into the police. If no one claims it after x amount of time it is yours free and clear.

    • by jedidiah ( 1196 )

      And what crime is that exactly?

      Unlawful finding?

      It's not really theft.

      Courts have rules too you know. They are very much like machines or computing devices in this regard. You can't just make sh*t up because you think it sounds good or it benefits your pet corporation.

      • by Lumpy ( 12016 )

        "Courts have rules too you know."

        Yes they do. And those rules have a price.

        Rule #1 - Rich guy get's more justice.
        Rule #2 - please see rule #1 when complaining.

      • by Richard_at_work ( 517087 ) on Wednesday October 12, 2011 @09:47AM (#37690268)

        I think you need to actually review a lot of the understanding you are basing your comment on...

        One who finds lost property under circumstances which give him knowledge of or means of inquiry as to the true owner, and who appropriates such property to his own use, or to the use of another person not entitled thereto, without first making reasonable and just efforts to find the owner and to restore the property to him, is guilty of theft.

        CAL. PEN. CODE 485 : California Code - Section 485

        http://www.shouselaw.com/appropriation-lost-property.html [shouselaw.com]

        • by LWATCDR ( 28044 )

          You mean finders keepers isn't the law of the land! I am so going to take my kindergarden teacher to court.

      • It wasn't theft due to simply finding it. He sold goods that didn't belong to him. Since he was in effect claiming ownership when he sold it, he is trafficking in stolen goods. Simply finding it wasn't a crime. Pretending it was his and selling it to the highest bidder is a crime if you don't own the goods in question or you are not authorized to sell the goods in question.

      • Courts have rules too you know.

        Yes, and in this case those rules state that you must return found property to its owner, or—if you can't find its owner—the police, otherwise it's stealing.

        And where is the contention here, exactly?

      • It's not really theft.

        If you look up California law, which is the one that decided this case, you will find that picking up an item that was lost, and not trying to return it to the rightful owner is theft. In New York, it is a different offence than theft, but treated just as badly. In Germany, it would depend on the situation. If found in a bar, or on a train, or an airport, or a similar place that is under the control of someone else, then it would be theft. When found in a public place that is not owned by anyone it would be

      • by Revotron ( 1115029 ) on Wednesday October 12, 2011 @10:06AM (#37690570)
        I highly doubt you're educated in any form of law, but luckily I am, so let me break it down for you.

        "Unlawful taking" is actually a crime and is exactly what it sounds like - taking something that you don't own, with the intention of making it yours. And it stands quite well legally that his intent to sell the device constituted him making it his own property. Therefore, the selling of the unlawfully taken phone to a third party (a crime in and of itself) signifies the lack of intent to return the device to its owner.

        Oh, by the way, even if you're going to assume that the Apple employee left it there specifically so someone would find it, the fact that somebody did pick it up and take it as their own property to sell counts as Conversion, the legal definition of which is taking sole possession of something you have been given control over with no intent to return it. It's like embezzlement, but without money.

        The courts DO have rules. They're called laws. And everything I just explained to you IS the law.
      • You're dead wrong [onecle.com]

        California Penal Code section 485: One who finds lost property under circumstances which give him knowledge of or means of inquiry as to the true owner, and who appropriates such property to his own use, or to the use of another person not entitled thereto, without first making reasonable and just efforts to find the owner and to restore the property to him, is guilty of theft.

        VERY easy to prove intent here, as he sold a phone worth, maybe, $800 tops, for $5000. He knew exactly what he had, and he acted criminally in not returning it to the bar owner or Apple itself. Moreover, he clearly tried to profit from his theft. He's lucky he didn't get jail time.

        Think what you want about the morality of the law. However, it's clearly spelled out, and he clearly broke it.

      • by jo_ham ( 604554 )

        If he finds it or steals it, he must turn it into the police if he doesn't know who it belongs to (let's assume the phone was locked and they didn;t have all of the guy's personal details for a moment), and then after a set amount of time you can claim it as your own if the real owner doesn't claim it first. Then you're free to do what you want with it.

        He didn't do that, so he broke those "rules that courts have too" that is very specific in CA.

        Apple has nothing to do with this, the guy was a prize idiot fo

    • Before anyone starts ranting about this case, here is what I remember about it.
      • He found the phone in a bar.
      • He got the name of the owner before the phone was remotely wiped.
      • He then realized it wasn't a 3G but an unknown design but with Apple logos.
      • He had a friend call Apple's general tech support hotline to inquire about it and if any rewards were available.
      • Tech support had no information about it (as they are there to help customers with tech problems).
      • He then shopped the prototype around.
      • His roommate warn
      • by jo_ham ( 604554 )

        That's pretty much it. He also claimed he "tried to return it to Apple, but the tech support line thought he was a prank caller", and seemingly didn't think to call the press/PR number on Apple's website instead of the AppleCare tech support line.

  • Yes the DA wants jailtime but I don't see that will do much good. I think at worst this was an E felony. Besides the CA jails are already overcrowded. Putting someone in jail for their first offense (as far as I know) when they are going to release them in 1/3 of their time anyways would not have served much purpose. I hope that the $250 didn't include forfeiture of $5000 that he got.
    • by vlm ( 69642 )

      Yes the DA wants jailtime but I don't see that will do much good. I think at worst this was an E felony. Besides the CA jails are already overcrowded. Putting someone in jail for their first offense (as far as I know) when they are going to release them in 1/3 of their time anyways would not have served much purpose. I hope that the $250 didn't include forfeiture of $5000 that he got.

      Its useful to compare to typical shoplifting convictions.

      Basically the courts decided on a penalty that locally is only a little harsher than shoplifting an average iphone, much less than he would typically get for stealing $5K.

      I have not looked into the guys prior record, if any, which at this low level has a pretty big influence on the court's punishment.

  • by Anonymous Coward on Wednesday October 12, 2011 @09:29AM (#37689988)

    For buying and destroying goods that were obviously not the property of the person selling them?

    • by retech ( 1228598 )
      And then trying to extort Apple. Brian Lam by his own account try to extort Jobs on this. Demanding something in return for the hot property... He should be charged and sentenced.
    • The DA's already decided that they're not pursuing criminal charges against Gizmodo, but that doesn't preclude a civil action.

    • by UnknowingFool ( 672806 ) on Wednesday October 12, 2011 @10:06AM (#37690580)
      The DA has said no. Their contention is that Gizmodo crossed a line but they were in a very grey area in terms of journalistic rights because they did technically report on it. I think the DA would have won but the battle wasn't worth it.
    • Disassembling an iPhone is destroying it? I'm sorry, I missed the part where Gizmodo tried to blend the phone.

      Any 'destruction' was Apple remotely disabling the hardware after they realized the phone was missing.

      Gizmodo disassembled the phone to identify the chipsets used, as it was highly likely the phone was some sort of Chinese clone.

      Gizmodo is a news organization, previews about a new iProduct are huge news so yes, they bought the story and tried to contact Apple multiple times about it, Apple denied a

  • by bool2 ( 1782642 ) on Wednesday October 12, 2011 @09:36AM (#37690084) Homepage
    The whole thing seems a bit one sided. Given that Gizmodo knowingly paid for stolen goods, where is their equivalent fine, community service and probation?
  • by sl4shd0rk ( 755837 ) on Wednesday October 12, 2011 @09:37AM (#37690102)

    Seems like *knowingly* selling stolen items could turn into a sh^Htstorm of legal charges very easily. Especially if you can prove intent; and it wouldn't be too hard to prove with a $5k pricetag.

    • Seems like *knowingly* selling stolen items could turn into a sh^Htstorm of legal charges very easily. Especially if you can prove intent; and it wouldn't be too hard to prove with a $5k pricetag.

      I agree completely! Now, what's a ststorm?

  • by Tsingi ( 870990 ) <graham.rick@gma[ ]com ['il.' in gap]> on Wednesday October 12, 2011 @09:47AM (#37690278)
    A man walks into a bar in Cupertino, has a drink, and gets up to leave.
    On leaving the bartender notices that he has left his iPhone on the table.
    Bartender: "Charlie, you left your iPhone again."
    Customer: "sorry Phil, but it's cheaper than buying commercials."
    Bartender: "Maybe, but my customers customers keep ending up in jail."
    • by jo_ham ( 604554 )

      Customer: "well, perhaps your customers should stop breaking the law."

      • Perhaps the judges & prosecutors should stop selectively enforcing laws for the benefit of giant corporations that make more money per minute than this 'criminal' will in his lifetime.

        When Joe Schmoe can call down a police taskforce to find his keys every time he drops them when he's out drunk, I'll start feeling like there was a crime here.

        • by jo_ham ( 604554 )

          Well, maybe he shouldn't have made such a prize fool of himself. He effectively stood in front of a cop and said "I'm going to break the law, do you have a camera on hand to record the evidence".

          He self-incrimintaed, and as a bonus had Gizmodo back it up with printed information. The PD and court never had it so easy to get a "case solved" marker for their stats.

          It's amusing how it's "selective enforcement" when it's a company you dislike, but it's "justice!" when it's against that same corporation....

          There

          • Don't recall saying it was justice or that Apple somehow was asking for it, or that I hate Apple. Weird how you insert facts that fit your own version. There's a description for that.. oh yes, Weird Liar.

            I did say that 99.99999% of times that this situation happens, the police wouldn't even bother writing down a report if you did bother reporting your phone stolen. The only reason it's gone this far is because Apple pushed it. They could have quietly gotten their phone back dozens of other ways, before

  • by QuasiSteve ( 2042606 ) on Wednesday October 12, 2011 @10:05AM (#37690564)

    Quick summary timeline...

    Dude sees an old MacBook Pro on Craigslist listed by Seller as broken.
    Dude buys it thinking maybe he can fix it.
    Dude does indeed fix it, requiring reflowing of parts, adding parts (ram, HDD, etc.), chronicles it at Anandech, noting that it seems to be no ordinary MBP.
    http://forums.anandtech.com/showthread.php?t=2165252&highlight=macbook+antenna [anandtech.com] - Prototype Macbook Pro with 3G: In my shop now!

    Dude then sells it on Craigslist himself as he has no use for it and doesn't yet realize its uniqueness.
    Buyer takes it to an Apple Store for some service, Apple Store Genius bar says "This is not an Apple product." on account of weird things in there.
    http://www.macrumors.com/2011/08/30/apple-genius-bar-didnt-recognize-macbook-pro-3g-prototype-apple-now-wants-it-back/ [macrumors.com] - Apple Genius Bar Didn't Recognize MacBook Pro 3G Prototype

    Buyer sues Dude, wins (in part based on Apple Store findings), Dude is out moneys.
    Dude thinks 'wtf', though, and takes a closer look at the MacBook Pro, asking around on forums.
    Dude learns that the red motherboard implies it's a prototype.
    Weeks pass and Dude does what anybody who isn't a fanboy would do - puts it up for sale on e-bay.
    http://news.cnet.com/8301-27076_3-20092180-248/3g-equipped-macbook-prototype-pops-up-on-ebay/ [cnet.com] - 3G-equipped MacBook prototype pops up on eBay

    e-bay bids go up to $70k, listing is pulled due to request from Apple.
    Dude then hears nothing, sits around waiting for some manner of official explanation for days on end.
    CNet, however, now wants to know what happened, so arrange an interview, in which they of course also call Apple.

    Apple suddenly takes very keen notice.
    http://m.cnet.com/Article.rbml?nid=20099494&cid=null&bcid=&bid=-248 [cnet.com] - Apple wants its 3G MacBook prototype back

    Dude gets call - Apple wants their hardware back and they can have somebody stop by Dude's private residence that evening.
    Dude says 'I think not, my lawyer will be in touch'.

    Lawyer says Apple have no case.
    Lawyer and Apple chit chat.
    Lawyer says having no case matters shit all when you're Apple, so give up or incur huge costs.

    Apple thus sends over a PI to pick up Prototype MBP.
    Dude hands over the MBP.
    Dude then sits around again wondering wtf just happened while waiting to see if he gets compensated in any way at all.
    Apple does nothing.
    Dude then petitions to Apple to get his shit back.
    Apple says nothing, but does send an unmarked FedEx box with parts back.
    http://news.cnet.com/8301-27076_3-20117512-248/prototype-3g-macbook-buyer-gets-parts-back [cnet.com] - Prototype 3G MacBook buyer gets parts back

    Dude now left with little option but either go "oh well", or sue the original Seller for incurred costs. Seller however says he received the MBP in earnest.

    It would have been nice of Apple if they had arranged an exchange for a shiny new MBP and cover Dude's costs, as there's no reason to believe that this prototype was stolen and - as of the latest reports - Apple never filed it as such either.

    The 'best' part? Being on IRC, watching a guy go from not being a fanboy but certainly an admirer of Apple, to being completely disenchanted.

  • http://law.onecle.com/california/penal/485.html [onecle.com]

    IANAL, but it's spelled out pretty clearly in black and white. He's lucky he didn't get jail time.
  • I thought someone wrote a Finder for iOS.

  • by Shoeler ( 180797 ) * on Wednesday October 12, 2011 @10:23AM (#37690850)
    Look - first off, the idiot screwed up. He never owned the device. Finders are NOT keepers, you deucebag. Be a man and try to find its owner instead of trying to profit.

    However.

    Realize that had another company done something like this, NO ONE GOES TO JAIL. Thomas Jefferson (who was kind of a big deal) showed quite a bit of distrust and disliking of them: "I hope we shall crush in its birth the aristocracy of our monied corporations which dare already to challenge our government to a trial by strength, and bid defiance to the laws of our country."

    Abraham Lincoln too (specific to banks):

    "As a result of the war,
    corporations have been enthroned and an era of corruption in high places
    will follow, and the money power of the country will endeavor to prolong
    its reign by working upon the prejudices of the people until all wealth
    is aggregated in a few hands and the Republic is destroyed."

    So as you're lobbing your scathing remarks at this stupid man, also realize that the company whose interests are being protected by this legal act would itself not be held to these same standards.
  • I've been shopping on craig's list for an iPhone recently and $250 is a killer price, especially for a 4G model. He got a great deal. True, he does have to do 40 hours of community service, but with the power of the iPhone and super fast 4G LTE network speeds, he can totally multitask, so it's really only like about 10 hours. I think I'll be on the lookout for misplaced prototypes now too. WAY cheaper than retail.

  • by Nom du Keyboard ( 633989 ) on Wednesday October 12, 2011 @11:58AM (#37692204)
    This prosecutor sounds more like he was trying to enforce Apple Justice than Real Justice. I'd like to see an investigation of his bank accounts for any recent large deposits.

    Note to Apple: If you want to keep your secrets, keep them on your campus and don't let them out into the Real World.

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