5 people charged in alleged scheme involving thousands of counterfeit iPhones and other Apple devices – Daily News

Five people have been indicted 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 genuine products that were then resold, the US Department of Justice announced in a press release 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 devices to Apple as if they were genuine , legitimately purchased and eligible for the Apple program. warranty programs.

Friday's release said the suspects returned and attempted to return more than 16,000 counterfeit Apple devices, causing Apple at least $12.3 million in losses.

Devices shipped from China were designed to look like real Apple devices. Real ID numbers and serial numbers on counterfeit devices impersonate genuine products purchased under Apple's Manufacturer's Warranty and Extended Warranty Program and owned by real people across the United States , according to the DOJ.

The suspects claimed the products were broken or non-operational and were covered by the company's warranty programs. Some of the false reasons given to Apple Store employees were that the device wouldn't turn on, was physically damaged or had other defects, according to the affidavit, according to prosecutors.

The defendants visited multiple Apple stores in Southern California daily, including up to ten Apple stores in Pasadena, Irvine, Brea, and Rancho Cucamonga, where they allegedly returned the devices.

Apple allegedly sent the defendants a replacement or repaired genuine Apple device either to an Apple store, where they returned to pick up the new device, or to the 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.

In addition, when returning, they misspelled postal addresses to hide the numerous fraudulent returns and used pseudonyms to make appointments at Apple stores.

After receiving the genuine devices, the defendants allegedly shipped the genuine 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 of conspiracy to commit wire fraud and mail fraud, one count of aggravated identity theft, seven counts of wire fraud, 12 counts of charge of mail fraud and one count of conspiracy to traffic in counterfeit goods. ”, said the DOJ press release.