2 Men Fined $563,583 for Cell Phone Fraud

In what one telecommunications company called the largest penalty for cellular phone fraud, two San Fernando Valley men were ordered Friday to pay more than half a million dollars in fines.

Los Angeles Superior Court Judge Carlos R. Moreno ordered Vage Patatanyan of Northridge and David Younesi of Woodland Hills to pay $563,583 after the pair pleaded guilty and no contest, respectively, on April 17 to several counts of fraud and the sale of devices used to “clone” cell phones for unlawful use.

In June, the men were declared liable for the losses to AirTouch Cellular in 1994 and 1995 and ordered to pay restitution.

“Fraud is a very costly crime for the cellular industry,” Brian Jones, an executive vice president and general manager of the San Francisco-based company, said in a statement. “This restitution order sends a strong message that cloning is not only a felony, it can be very expensive for those who are convicted.

“We will continue to take strong action to stop cellular fraud, to prosecute those engaging in it and to seek restitution from them when they are convicted,” he said.