Several criminal gangs returned counterfeit iPhones for genuine replacements
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“Return” scam About 16,000 fake iPhones and iPads into Apple stores have led to five arrests that could lead to decades behind bars.
A criminal ring operating in southern California has been charged with stealing approximately $12.3 million worth of Apple products by “bringing back” real-looking counterfeits to Apple Stores that didn't work. The stores then replaced the non-functional clones with genuine iPhones and iPads, which were then shipped overseas.
Five Chinese citizens living in the Los Angeles area were detained on May 30, 2024. Yang Song, Junwei Jiang, Zhengxuan Hu, Yushan Lin and Shui Xing will stand trial on charges of aggravated identity theft and conspiracy. trafficking in counterfeit goods, and conspiracy to commit wire fraud and mail fraud.
“The defendants are accused of taking advantage of Apple's customer service policies to steal more than $12 million in merchandise,” said U.S. Attorney Martin Estrada. “Businesses should not be harassed or deceived for responding to customer needs, and these federal charges send a message that our office will take decisive action to identify and hold accountable those who commit fraud.”
A trial date has not yet been set.
If convicted, each defendant could face up to 20 years in prison on each count of conspiracy to commit fraud and up to two years in prison on each count of identity theft. Each could also face up to 10 years in prison on charges of conspiracy to traffic in counterfeit goods.
As in previous similar cases, the defendants allegedly worked with co-conspirators in China to obtain counterfeit Apple products from various locations in southern California. They then took the non-functioning devices to various Apple Stores and received original replacement products.
Targeting Apple Stores in Southern California
Fake Apple Products featured by the group will have identification numbers that match existing products owned by real people in the US that are still under warranty. In total, the defendants fraudulently returned and attempted to return more than 16,000 counterfeit Apple devices, the indictment states.
More than 10 different Apple Stores were affected in various parts of southern California, including areas such as Beverly Hills, Northridge and Rancho Cucamonga. In many cases, the indictment alleges, the group visited up to 10 different Apple stores in southern California in a single day to return counterfeit devices.
A similar criminal group, using the same technique, “recovered” more than 10,000 counterfeit Chinese-made iPhones in 2019, stealing approximately $6.1 million from Apple. The leaders were ultimately sentenced to four to five years in prison.
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