Two Chinese nationals living in Riverside County pleaded guilty on Wednesday to a scheme to defraud Apple by fraudulently returning thousands of counterfeit iPhones, iPads, and other goods, resulting in more than $16.2 million in losses for the tech giant.
Yushan Lin, 31, and Shuyi Xing, 35, both of Corona, admitted to conspiracy charges involving wire and mail fraud. Xing also pleaded guilty to conspiracy to commit money laundering in a separate case tied to more than $1 million in elder fraud schemes, federal prosecutors said.
The four other defendants who have also pleaded guilty, include
- Wenhui Huang, 40, of Chino Hills, the group’s ringleader, who authorities say was in the country illegally
- Yang Song, 38, of Corona, the group’s second-in-command
- Junwei Jiang, 38, of East Los Angeles
- Zhengxuan Hu, 27, of Alhambra, who authorities say was in the country illegally
Prosecutors stated that the conspiracy spanned from at least December 2015 to March 2024.
Counterfeit Apple products were smuggled from China to California, where the devices were designed to mimic genuine Apple items, down to their serial numbers, which matched those of real devices still under warranty. The group then returned the fakes to Apple stores across Southern California, falsely claiming they were broken or defective.
Apple employees, believing the devices were genuine, replaced them with authentic products under warranty programs. The conspirators then shipped the real iPhones and iPads back to China and other locations for resale at a profit.
Authorities stated that Lin and Xing “personally fraudulently returned and attempted to return at least 1,584 counterfeit devices to Apple, causing at least $1,116,544 in actual losses to the company. The larger conspiracy fraudulently returned and attempted to return more than 27,645 counterfeit devices to Apple, causing at least $16,239,254 in actual losses to the company.”
The group allegedly targeted stores in Beverly Hills, Sherman Oaks, Pasadena, Irvine, Northridge, Manhattan Beach, Brea, Rancho Cucamonga, Cerritos, and other locations, as well as malls including The Grove, South Coast Plaza, Fashion Island, and The Americana at Brand.
U.S. District Judge André Birotte Jr. scheduled sentencing for Dec. 10. Lin faces up to 20 years in federal prison, while Xing faces a maximum of 40 years.
The post 2 Riverside County residents plead guilty in $16M Apple fraud scheme appeared first on KTLA.
