Scam involving 6,000 counterfeit iPhones lands two Maryland men in prison

4 October 2024 1 minute Author: Newsman

Two Maryland residents have been sentenced to prison for a fake iPhone trade-in scam that cost Apple Inc. suffered losses in the amount of more than 2.5 million US dollars.

Chinese nationals Haotian Sun and Pengfei Xue were found guilty of participating in an elaborate fraud scheme to send counterfeit iPhones to Apple to exchange for genuine ones. Between 2017 and 2019, they received mobile phones from stores in Hong Kong, Georgetown, Washington and sent them for replacement to other Apple stores. In total, more than 6,000 counterfeit cell phones were sent, resulting in more than $2.5 million in losses.

The scheme lasted several years and was part of a larger electronics scam. Participants obtained counterfeit mobile phones through a network in Hong Kong, forged serial numbers and IMEIs, and applied to exchange them for genuine products. The investigation was conducted by the US Postal Inspection Service and the Bureau of Investigation of the US Department of Homeland Security, which revealed the scale of the operation.

The defendants were sentenced to 54 and 57 months in prison, respectively, and ordered to pay more than $1 million in restitution.

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