Huffington Magazine Issue 59 | Page 70

STATE OF CALIFORNIA DEPARTMENT OF JUSTICE OFFICE OF THE ATTORNEY GENERAL THE BIG STEAL curity busted through the front window at Ace Wholesale’s location in Taylor, leaving behind piles of shattered glass. The storefront is now occupied by a company that sells outdoor pools and jacuzzis. Federal agents spent six hours removing boxes and surveillance cameras from inside Ace Wholesale’s location in Troy, Zochowski said. In court documents, Ace Wholesale said the raids forced the company to shut down its business. Its website says its inventory is now “entirely online” and being carried by its sister company, Electronics Direct, which is also owned by Floarea. Baldinger, of Sprint, said the raid against Ace Wholesale caused “a short-lived drop” in the number of phones being shipped overseas. But in the increasingly competitive underground smartphone trade, shutting down one operation — even a major one — left plenty of others waiting in the wings, Baldinger added. “There are so many other players out there,” he said. “The raid provided an opportunity for a lot of other traffickers to step up and fill the void.” Gerry Smith is a technology reporter at The Huffington Post. HUFFINGTON 07.28.13 In addition to stolen iPhones, authorities in California confiscated cash from the suspects.