Two individuals from China have been found guilty and face up to 20 years in prison after being caught and convicted of submitting over 5,000 counterfeit iPhones to Apple. The value of the fake devices exceeded $3 million, and the individuals aimed to replace them with genuine iPhones.
Apple’s warranty policy allows customers to return malfunctioning iPhones within a year of purchase for a replacement. Additionally, the company offers insurance protection plans that extend the warranty period. Customers have several options for submitting defective devices, including shipping them to Apple through UPS free of charge, visiting an Apple retail store, or going to an Apple Authorized Service Provider.
Haotian Sun and Pengfei Xue, along with their co-conspirators Wen Jin Gao and Dian Luo, took advantage of Apple’s policy to replace non-functioning counterfeit devices. Their scheme lasted from July 2017 to December 2019. The objective of the conspiracy was to fraudulently obtain authentic iPhones from Apple by submitting fake ones for repair and replacement.
The counterfeit iPhones were shipped from Hong Kong to CMRA mailboxes in UPS stores, using the individuals’ actual identification cards. They then submitted these inauthentic devices, which had spoofed serial numbers and IMEI numbers, to Apple retail stores and Apple Authorized Service Providers. In return, they received replacement iPhones through private and commercial carriers like FedEx, DLH, and UPS.
The illegally obtained replacement devices were shipped back to the conspirators in Hong Kong, where they were sold, and the funds were distributed among the members of the scheme.
Sun and Xue were convicted of mail fraud and conspiracy to commit mail fraud. U.S. postal inspectors apprehended them in December 2019, leading to their trial and subsequent conviction. They are scheduled to be sentenced on June 21, 2024, and could both face a maximum penalty of 20 years in prison.
This case serves as a reminder of the serious consequences associated with counterfeit activities and fraudulent schemes. Companies like Apple rely on trust and integrity to maintain their reputation and ensure customer satisfaction. The conviction of these individuals sends a strong message that such illegal activities will not be tolerated.
An FAQ section based on the main topics and information presented in the article:
Q: What were the individuals from China found guilty of?
A: The individuals were found guilty of submitting over 5,000 counterfeit iPhones to Apple.
Q: What was the value of the fake devices?
A: The value of the fake devices exceeded $3 million.
Q: What was the objective of the conspiracy?
A: The objective of the conspiracy was to fraudulently obtain authentic iPhones from Apple by submitting fake ones for repair and replacement.
Q: How did the individuals ship the counterfeit iPhones?
A: The counterfeit iPhones were shipped from Hong Kong to CMRA mailboxes in UPS stores, using the individuals’ actual identification cards.
Q: How did the individuals obtain replacement iPhones from Apple?
A: They submitted the counterfeit devices with spoofed serial numbers and IMEI numbers to Apple retail stores and Apple Authorized Service Providers, and received replacement iPhones through private and commercial carriers like FedEx, DLH, and UPS.
Q: What did the individuals do with the illegally obtained replacement devices?
A: The replacement devices were shipped back to the conspirators in Hong Kong, where they were sold, and the funds were distributed among the members of the scheme.
Q: What were the charges against Sun and Xue?
A: Sun and Xue were convicted of mail fraud and conspiracy to commit mail fraud.
Q: What are the potential penalties they could face?
A: They could both face a maximum penalty of 20 years in prison.
Definitions:
– Counterfeit: An imitation or replica of something, often made with the intent to deceive or defraud.
– IMEI: International Mobile Equipment Identity, a unique 15-digit number used to identify mobile devices.
– UPS: United Parcel Service, a multinational package delivery and supply chain management company.
– Spoofed: Falsified or altered in order to deceive or mislead.
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The source of the article is from the blog radardovalemg.com