The last two members of a gang involved in a nine year $16.2 million fake iPhone swap scheme have pleaded guilty in California, reports AppleInsider.
The Justice Department says the gang returned thousands of counterfeit Apple products, including fake iPhones, iPads, and other devices to Apple Stores that were smuggled into the country between December 2015 and March 2024.
Yushan Lin, 31, and Shuyi Xing, 35, both of Corona, California, have pled guilty to one count of conspiracy to commit wire fraud and mail fraud. Xing also pleaded guilty to an additional count of conspiracy to commit money laundering in connection with a separate money laundering scheme involving the laundering of more than $1 million in funds from various elder fraud schemes. The duo are the last of six defendants to plead guilty in the case.
The four other members of the gang have also pleaded guilty and are awaiting sentencing are:
- Wenhui Huang, 40, of Chino Hills, the group’s ringleader, who is an illegal alien
- Yang Song, 38, of Corona, the group’s second-in-command
- Junwei Jiang, 38, of East Los Angeles
- Zhengxuan Hu, 27, of Alhambra, who is also an illegal alien.
The release says the defendants visited “stores in Beverly Hills, Sherman Oaks, Pasadena, Irvine, Northridge, Manhattan Beach, Brea, Rancho Cucamonga, Cerritos, and at shopping malls such as The Grove in Los Angeles, South Coast Plaza in Costa Mesa, Fashion Island in Newport Beach, and The Americana at Brand in Glendale.”
The counterfeit devices had identification numbers and serial numbers that matched genuine Apple hardware, preventing Apple Store personnel from identifying them as counterfeit.
Apple Store employees gave the defendants new or repaired devices to replace the broken fakes. The replacements were then shipped across the United States or to China for profit.
The group returned or attempted to return more almost 21,000 with a value of at least $16.2 million.
The case was investigated by Homeland Security Investigations and IRS Criminal Investigation. The United States Postal Inspection Service and the Los Angeles Police Department were also involved, with US Attorney Andrew M. Roach prosecuting.
Lin and Xing will be sentenced on December 10. Lin faces up to 20 years in federal prison, while Xing could receive as much as 40 years.
