A Michigan man has pleaded guilty to fraud and money laundering in a scheme to acquire more than 9,000 replacement iPod Shuffle music players.

Twenty-three-year-old Nicholas Woodhams of the Kalamazoo area appeared in federal court in Grand Rapids on Monday, less than a month after charges were filed.


Woodhams had an iPod repair shop and knew that owners could get a replacement if their Shuffle had problems. He guessed valid serial numbers and entered them into Apple Inc. ( AAPL - news - people )'s Web site. Woodhams then resold the Shuffles shipped by Apple.

He has agreed to give up property, including a house, an Audi sedan, a race car and more than $570,000. Woodhams will be sentenced Aug. 25. A message seeking comment was left with his lawyer.

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