This story doesn't sound too surprising, as these kind of scumbags are out there, but it would be helpful to know the names of those involved.

For example, Carl Freer or Rich Jenkins of Gizmondo/GetFugu/Serge fame. see http://carlfreerscam.wordpress.com/.

Sadly, if these folks put as much effort into building a real company as they did their criminal enterprises, they might actually achieve legitimate success and not have to run from the FBI.