Two men were sentenced for their involvement in a scheme that tricked Apple out of millions of dollars worth of iPhones.
The scam was operated this scam from May 2017 to September 2019.
They submitted fake iPhones to Apple for repair.
In a striking case of fraud, two men were sentenced for their involvement in a scheme that tricked Apple out of millions of dollars worth of iPhones. This case highlights the lengths some individuals will go to for quick financial gain, often at the expense of major corporations. As technology continues to advance, so do the tactics used by fraudsters, making it important for consumers and companies alike to stay vigilant.
Haotian Sun, 34, a Chinese citizen living in Baltimore, received a sentence of 57 months in prison, along with three years of supervised release. He was also ordered to pay Apple $1,072,200 (about Rs 9 crore) in restitution, as well as a forfeiture money judgment of $53,610 (approx. Rs 45 lakhs). Pengfei Xue, 34, another Chinese citizen residing in Germantown, Maryland, was sentenced to 54 months in prison and was similarly ordered to pay $397,800 (about Rs 3 crore) in restitution to Apple, alongside a forfeiture judgment of $19,890 (approx. Rs 16 lakh).
According to court documents, Sun and Xue, together with their co-conspirators, operated this scam from May 2017 to September 2019. They submitted counterfeit iPhones to Apple for repair, and received genuine replacements.
To execute their plan, they received shipments of fake iPhones from Hong Kong to various UPS mailboxes across the Washington, D.C. metropolitan area. Once they had the counterfeit devices, they submitted them to Apple retail stores and authorized service providers, using fake serial or IMEI numbers.
Also read: Woman caught smuggling 26 iPhone 16 Pro Max at Delhi Airport: How she tried to sneak them
During their operation, Sun and Xue submitted over 6,000 fake iPhones to Apple, resulting in losses exceeding $2.5 million (approx. Rs 21 crore). Sun and Xue were both convicted after a five-day jury trial, where both men were found guilty of conspiracy to commit mail fraud.
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Ayushi Jain
Tech news writer by day, BGMI player by night. Combining my passion for tech and gaming to bring you the latest in both worlds. View Full Profile
