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Hi fatalrealm,
Yes, what you described is indeed possible. However, the MiFi device cannot have a phone number and must be purchased at the full retail price. If it is activated with it's own line, you are not able to transfer the SIM, since the SIM is based upon the phone number.
You can purchase a MiFi at the full retail price online at http://www.vzw.com .
Thank you!