In a recent development, two Chinese nationals, Haotian Sun and Pengfei Xue, have been found guilty by a federal grand jury for attempting to defraud Apple using 5,000 counterfeit iPhones. The duo had devised a scheme to deceive Apple into replacing the fake devices with real products, aiming to acquire more than $3 million in the process.
According to the Justice Department, Sun and Xue operated from Maryland and received shipments of counterfeit iPhones from Hong Kong. They then submitted these fake iPhones, which had spoofed serial numbers and IMEI numbers, to various Apple retail stores and Apple Authorized Service Providers. The group, which also included accomplices Wen Jin Gao and Dian Luo, falsely claimed that the counterfeit iPhones had suffered damage and required replacement within the warranty period.
Court documents reveal that this fraudulent activity lasted from June 2017 to September 2019. Astonishingly, Apple accepted over 2,700 of the submitted counterfeit iPhones, even though they featured deceptive serial numbers and IMEI numbers taken from authentic iPhones. It was only when an Apple brand investigator detected the scheme and identified the counterfeit components and misleading serial numbers that law enforcement was alerted.
The investigation further uncovered that Sun had opened eight UPS Store mailboxes using his Maryland driver’s license and university identification card in 2017. The US Postal Inspector subsequently arrested Sun and Xue in December 2019, exposing the entire operation.
Both Sun and Xue, aged 33, have been convicted of mail fraud and conspiracy to commit mail fraud. As they await sentencing on June 21, they face a maximum of 20 years in prison. This case serves as a reminder of the importance of vigilance and robust fraud detection protocols even for large multinational corporations like Apple, safeguarding both their customers’ trust and their own business integrity.
FAQ
Q: What is the article about?
A: The article is about two Chinese nationals who have been found guilty of attempting to defraud Apple using counterfeit iPhones.
Q: How did the duo attempt to defraud Apple?
A: The duo submitted counterfeit iPhones with spoofed serial numbers and IMEI numbers to Apple retail stores and Apple Authorized Service Providers, claiming that the devices were damaged and needed replacement within the warranty period.
Q: Did Apple accept the counterfeit iPhones?
A: Yes, Apple accepted over 2,700 of the submitted counterfeit iPhones, even though they had deceptive serial numbers and IMEI numbers.
Q: How was the scheme detected?
A: An Apple brand investigator identified the counterfeit components and misleading serial numbers, which led to law enforcement being alerted.
Q: What charges have the two Chinese nationals been convicted of?
A: The two Chinese nationals have been convicted of mail fraud and conspiracy to commit mail fraud.
Q: What is the potential punishment they face?
A: As they await sentencing on June 21, they face a maximum of 20 years in prison.
Key Terms and Jargon
– Counterfeit iPhones: iPhones that are fake replicas, not produced by Apple.
– Serial numbers: Unique numbers assigned to each iPhone for identification purposes.
– IMEI numbers: International Mobile Equipment Identity numbers, which are unique identifiers for mobile devices.
– Apple Authorized Service Providers: Authorized service centers that can service iPhones and provide support for Apple customers.
– Mail fraud: The use of the mail system to carry out fraudulent activities.
– Conspiracy to commit mail fraud: An agreement between two or more individuals to commit mail fraud.
Suggested Related Links
– Apple: The official website of Apple.
– U.S. Department of Justice: The official website of the U.S. Department of Justice.
The source of the article is from the blog scimag.news