Two Chinese nationals have been found guilty of defrauding Apple of millions of dollars worth of iPhones by submitting counterfeit devices for repair and then receiving genuine replacements in a sophisticated scheme. Haotian Sun and Pengfei Xue, both 33, were convicted by a federal jury in the US District Court of conspiracy to commit mail fraud, which could lead to a maximum sentence of 20 years in prison. Their sentencing is scheduled for June 21, 2024.
The scam involved the two Chinese nationals receiving shipments of counterfeit iPhones from Hong Kong between May 2017 and September 2019, which they then returned to Apple retail shops and Apple Authorised Service Providers with falsified serial numbers and/or IMEI numbers. More than 5,000 iPhones were submitted to Apple over the course of two years, intending to cause a loss of more than $3 million to the company, according to the US Attorney’s Office.
The trial evidence revealed that Sun and Xue used various aliases during the scheme, and they were arrested on December 5, 2019. The case highlights the sophistication of the fraud and the potential impact on the business operations of multinational companies like Apple, serving as a warning to other would-be fraudsters attempting similar schemes.
The guilty verdict serves as a deterrent to individuals engaging in fraudulent activities targeting major corporations. The US Attorney’s Office described the scheme as a deliberate attempt to deceive Apple and cause substantial financial harm, underscoring the seriousness of the crime. The sentencing of Sun and Xue will be closely watched as it could set a precedent for similar cases involving large-scale fraud in the future.
