Federal prosecutors in New York have charged Eliahou Paldiel and Carlos Arturo Suarez Palacios with orchestrating a scheme that defrauded Uber and its drivers by implementing fraudulent surge charge fees. By using an app named Screwber, the duo is alleged to have manipulated the rideshare platform, ultimately netting about $40 million over six years, all while affecting both customers and compliant drivers adversely.
Paldiel and Suarez allegedly sold smartphones pre-installed with Screwber to 800 Uber drivers, giving them access to riders' destinations and fares before accepting rides. This led to the drivers selectively choosing only the most profitable fares, undermining the integrity of the rideshare system.
The duo is reported to have used another app called Fake GPS, allowing drivers to simulate their locations for surge pricing and bypass lines at airport rideshare pick-ups. This enabled them to enhance their earnings through deceptive practices at the detriment of honest drivers.
US Attorney Breon Peace stated, "As alleged, the defendants sought to enrich themselves by corrupting the rideshare market at the expense of unsuspecting passengers and hardworking drivers who play by the rules." This emphasizes the significant negative impact of their actions.
Collection
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