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  1. #1
    Join Date
    Sep 2019
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    2

    Default Wholesaling Iphones - California

    My business wholesales iPhones in California and there's a topic of hot debate.

    All purchases we make are business to business with all serial numbers on the invoices. Upon cross checking these serial numbers with a database called checkmend.com (industry leading tool) that checks the authenticity and background of device we discover that some of the devices are blacklisted by their original carriers. This typically happens due to someone losing their device, having it stolen, or not paying their bill and therefore defaulting (fraud), and then reporting it to the carrier. People will resell these devices to companies that buy them and then companies will invoice us these devices. We always turn down the blacklisted units but are curious of two things:

    If the checkmend report shows that a device is blacklisted by it's carrier does that constitute as stolen property? Or does it need to have a theft or police report attached to it to be legitimately considered stolen and prosecutable?

    If a device we purchase shows up clean and clear and we resell it to either business or end consumer and it later goes blacklisted, is the report and our due diligence in checking it in the beginning enough to protect ourselves legally? (We would obviously accept a return and refund for the device.)

  2. #2
    Join Date
    Jan 2006
    Posts
    38,728

    Default Re: Wholesaling Iphones - California

    It’s stolen if it’s stolen. Not all phones would necessarily be considered to be stolen in your various scenarios.

  3. #3
    Join Date
    Sep 2019
    Posts
    2

    Default Re: Wholesaling Iphones - California

    The checkmend reports when ran only come up that it's blacklisted by the carrier. The "Lost" or "Stolen" sections of the report still show a checkmark and clear. I'm assuming this means there are no loss reports, or theft reports attached? This is the software even the police and government agencies use to check electronics.

  4. #4
    Join Date
    Jan 2006
    Posts
    38,728

    Default Re: Wholesaling Iphones - California

    I’m not understanding your point. A stolen phone is a stolen phone whether it’s reported or not or when it is reported or included on some list. Obviously if there is nothing to show it is stolen or lead you to believe its stolen before you acquire it, the chances of you being charged with possession or dealing in stolen property would be quite minimal.

    A phone being blacklisted on the list means nothing more than it states.

    Using the list would be part of performing your due diligence but it would not necessarily be adequate to defend you that your should have been aware a phone might be stolen. If the price you pay is exceptionally low compared to typical market prices, that could be used to show the phone is likely stolen. That can lead to an argument you should have known it was likely to be stolen and you could be in legal jeopardy due to that.


    Although a phone may not be stolen, if blacklisted you should also be wary. If a phone cannot be activated due to being blacklisted, unless you specifically warned the buyer prior to purchase, you would be selling a phone you knew couldn’t be used for the purpose intended. That would make you liable to rescind the sale.

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