Two men purchased the phones at a discount by using false identities to sign up for two years of phone service. They planned to take the cheap phones to New York City and sell them for a profit.
From the U.S. Attorney's Office in Kansas:
Paul Alfredo Jiminez, 20, and Juan G. Pichardo-Lopez, 25, are charged with two counts of wire fraud and one count each of aggravated identity theft. The crimes are alleged to have occurred March 19, 2010, in Johnson County, Kan.