US Court Finds Chinese Nationals Guilty in Apple Fraud Case Involving Fake iPhones

San Francisco, CA – An American court has declared two Chinese nationals guilty of defrauding Apple in a sophisticated scheme. The presiding judge has set a sentencing date for June 21, 2024. The culprits were arrested in December 2019, and the federal jury at the United States District Court found Haitian San and Pengfei guilty of orchestrating the fraud.

Chinese Duo Faces Over 20 Years in Jail for Elaborate Scheme of Swapping Fake iPhones for Genuine Repairs

The charges revolve around the pair’s elaborate plan to deposit counterfeit iPhones with Apple after extracting genuine ones for repair or replacement. The court has allocated a maximum penalty of over 20 years for this crime.

The duo, both aged 33, were apprehended for receiving shipments of fake iPhones from Hong Kong between May 2017 and September 2019. Subsequently, they manipulated the devices by assigning fake serial numbers or IMEI numbers and returned them to Apple retail stores and authorized service providers.

Conspirators Aimed at $3 Million Loss for Apple in Two-Year Scam, Highlighting Urgent Need for Enhanced Tech Industry Security

According to the US Attorney’s Office, evidence suggests that the conspirators intended to cause Apple losses exceeding $3 million during their two-year fraudulent operation. Throughout this period, they employed various aliases to carry out their illicit activities.

The court is expected to provide more insights into the case during the sentencing hearing in June 2024. This incident underscores the ongoing challenges posed by international fraud and the need for robust security measures in the technology industry. With these revelations, Apple and other tech companies may reevaluate and strengthen their safeguards against similar fraudulent activities.