SoCal-Based Chinese Nationals Face Charges in Alleged Apple Device Fraud

Five Chinese nationals are facing federal charges for their involvement in a counterfeit Apple device scheme that resulted in the fraudulent return of thousands of fake iPhones, iPads, and other products at stores in Southern California. The alleged ringleader, Yang Song, and his co-conspirators coordinated with associates in China to ship counterfeit Apple devices to the U.S. The fake products were designed to resemble genuine items, with matching identification numbers. The defendants returned these counterfeit devices at various Apple stores in Southern California and claimed them to be genuine but faulty, covered under warranty. The returned products were either repaired or replaced with genuine items, which were then sold for a substantial profit. In total, the scheme caused Apple losses of at least $12.3 million. The defendants are facing multiple charges, including conspiracy to commit wire fraud, mail fraud, aggravated identity theft, and trafficking in counterfeit goods. If convicted, they could each face significant prison sentences. U.S. Attorney Martin Estrada emphasized that companies should not be defrauded for being responsive to customer needs.

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