Chinese Nationals Convicted in $3 Million Fake iPhone Scheme Targeting Apple
In a shocking turn of events, two Chinese nationals have been convicted by a federal jury in Washington, D.C., for their involvement in a fraudulent scheme that targeted tech giant Apple. The scheme involved submitting over 5,000 counterfeit iPhones to Apple for repair, with the intention of swindling the company out of more than $3 million.
The U.S. Department of Justice made the announcement on Tuesday, revealing that 33-year-old Hoatian Sun, also known as Hao Sun, Jack Sun, and Frank Sun, from Baltimore, and 33-year-old Pengfei Xue from Germantown, Maryland, were found guilty of mail fraud and conspiracy to commit mail fraud.
According to court documents and evidence presented during the trial, Sun and Xue, along with their co-conspirators, executed the fraudulent scheme between May 2017 and September 2019. Their modus operandi involved submitting counterfeit iPhones to Apple for repair, in exchange for which they would receive genuine iPhones.
To carry out their plan, the two Chinese nationals received shipments of fake iPhones from Hong Kong. These shipments were sent to UPS mailboxes scattered throughout the Washington, D.C., metropolitan area. The suspects then submitted the counterfeit iPhones, which had spoofed serial numbers and IMEI numbers, to Apple Authorized Service Providers and Apple retail stores.
The elaborate nature of the scheme is evident from the fact that Sun opened eight UPS Store mailboxes in 2017 using his Maryland driver’s license and university identification card. This allowed him to receive the shipments discreetly without raising any suspicion.
The fraudulent activity went undetected until December 2019 when both Sun and Xue were apprehended by U.S. postal inspectors. Their arrest marked the beginning of the legal battle that culminated in their recent conviction.
Apple, however, has remained tight-lipped about the incident and has not yet responded to requests for comment. It remains to be seen how this incident will impact the company’s reputation and customer trust.
The two Chinese nationals now face sentencing on June 21, where they could potentially receive up to 20 years in prison for their crimes. This case serves as a reminder of the lengths some individuals are willing to go to defraud major corporations and the importance of robust security measures to protect against such schemes.
As the tech industry continues to thrive, it is crucial for companies like Apple to remain vigilant and stay one step ahead of fraudsters. While this incident may be a setback, it is a testament to the resilience and determination of law enforcement agencies to bring criminals to justice.
In the end, it is the hope that cases like these serve as a deterrent to others who may contemplate engaging in similar fraudulent activities. The conviction of these two Chinese nationals sends a strong message that such schemes will not be tolerated, and those responsible will be held accountable for their actions.
