Two Men Charged in Uber Fraud Scheme

Eliahou Paldiel, 52, and Carlos Arturo Suarez Palacios, 54, have been indicted for a scheme that allegedly defrauded Uber, its drivers, and customers out of approximately $40 million by selling hacked smartphones and fraudulent apps, including one called 'Screwber.' This scheme, which operated for nearly six years, involved over 800 drivers who used these tools to manipulate GPS locations and pocket phony surge fees. The duo reportedly earned more than $1.5 million from the operation, which they likened to a drug deal. They were arrested by the FBI and face charges of wire fraud and money laundering, each carrying a potential sentence of up to 20 years per count. Prosecutors emphasized the detrimental impact of their actions on unsuspecting passengers and compliant drivers in the rideshare market. Both men were arraigned in federal court in Brooklyn, with U.S. Attorney Breon Peace vowing to hold those who disrupt fair market practices accountable.