2 California residents plead guilty in $16 million Apple warranty fraud scheme

"The counterfeits were made to look authentic, with serial numbers matching those of actual customers whose devices were covered under Apple warranties. The returns took place at Apple stores in Beverly Hills, Sherman Oaks, Pasadena, Irvine, Costa Mesa, Newport Beach, Glendale and other cities, according to court documents. Conspirators claimed the items were defective, leading Apple employees to repair or replace them with genuine devices. Those real products were then shipped to contacts in the U.S. and China for resale."

"Lin and Xing alone tried to return at least 1,584 counterfeit devices, causing more than $1.1 million in losses, prosecutors said. Overall, the conspiracy involved more than 27,600 devices and cost Apple at least $16.2 million. Four other defendants ringleader Wenhui Huang, 40, of Chino Hills; Yang Song, 38, of Corona; Junwei Jiang, 38, of East Los Angeles; and Zhengxuan Hu, 27, of Alhambra have also pleaded guilty and are awaiting sentencing."

Yushan Lin, 31, and Shuyi Xing, 35, pleaded guilty to participating in a years-long scheme that used counterfeit Apple products to defraud Apple of more than $16 million. They smuggled fake iPhones, iPads and other devices from China and returned them at Apple stores across Southern California. The counterfeits bore serial numbers matching actual customers covered under Apple warranties, prompting employees to repair or replace them with genuine devices that were then shipped for resale. Lin and Xing attempted at least 1,584 returns, causing over $1.1 million in losses. Four other co-defendants have pleaded guilty and are awaiting sentencing; Lin faces up to 20 years and Xing up to 40 years.

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