5 Indicted in Alleged Scheme to Sell Thousands of Counterfeit iPhones and Other Apple Devices – Daily News

Five people have been charged in connection with an operation that led to the return of more than 16,000 counterfeit Apple devices over more than nine years in exchange for authentic products that were then resold, the US Department of Justice announced on Friday, May 31. .

From December 2015 to March 2024, Yang Song, 40, of Corona, and Junwei Jiang, 37, of Los Angeles, allegedly received counterfeit iPhones, iPads and other Apple devices from China. Along with co-conspirators Zhengxuan Hu, 26, of Alhambra, Yushan Lin, 30, of Corona, and Shuyi Xing, 34, of Corona, the defendants allegedly returned the devices to Apple as if they were original, legally purchased, and eligible for the program. warranty.

Friday’s statement said the suspects returned and attempted to return more than 16,000 counterfeit Apple devices, resulting in losses to Apple of at least $12.3 million.

The devices shipped from China are designed to look like original Apple devices. According to the Department of Justice, the real identification numbers and serial numbers on the counterfeit devices were disguised as authentic products purchased under the manufacturer’s warranty and the Apple Extended Warranty Program and owned by real people throughout the United States.

The suspects claimed that the products were damaged or did not work and were covered by the company’s warranty programs. In a statement, prosecutors say that among the false reasons given to Apple store employees was that the device would not turn on, was physically damaged or had other defects.

The defendants visited multiple Apple Stores in Southern California on a daily basis, including as many as ten Apple Stores in Pasadena, Irvine, Brea and Rancho Cucamonga, where they allegedly returned the devices.

Apple allegedly sent the defendants an original replacement or repaired device either to an Apple store, where they returned to get a new device, or to dozens of mailboxes they allegedly rented throughout Southern California.

To avoid detection, the defendants rented dozens of mailboxes at UPS stores in southern California to receive counterfeit devices from China and genuine replacement devices from Apple.

Additionally, they mistyped mailing addresses when making returns to mask numerous fraudulent returns and used aliases to arrange appointments at Apple stores.

After receiving the authentic devices, defendants allegedly shipped the original devices to co-conspirators in the United States and abroad, primarily in China, where they were resold for a profit.

“All defendants are charged with one count each of conspiracy to commit wire and mail fraud, one count each of aggravated identity theft, seven counts of wire fraud, 12 counts of mail fraud and one count of conspiracy to traffic in counterfeit goods,” it said. statement from the Department of Justice.