A US federal court has sentenced an iPhone and iPad fraudster to a 51-month jail term, after finding him costing Apple $6 million in replacement devices.
Two others involved in this operation were jailed for 41 months each last year, and seized with $4 million worth of property and cash. The trio’s operation was cracked down by the FBI and San Diego Police Department, spanning several years.
Jailing the iPhone Fraudster Trio
Zhiwei “Allen” Liao, the alleged organizer and leader of a fraudulent operation that cost Apple $6 million, was sentenced to a 51-month jail term this week. Two of Liao’s brothers – also involved in this operation – were each sentenced to a 41-month jail term last year.
Over the years, the trio had purchased fake yet identical iPhones and iPads from China with serial numbers of genuine products sold by Apple in the US. They then hired hundreds of people to take the fake products into Apple stores and ask for a replacement, citing the devices wouldn’t power up.
Since the initial check done by Apple store employees showed that the devices were under warranty – considering their serial numbers – they replace the units with their original ones! The genuine devices were then sent back to China and sold.
This operation spanned several years before being cracked down by the FBI and San Diego Police Department, who arrested these individuals and seized property and cash valuing more than $4 million.
Regarding Liao’s sentence, FBI San Diego Special Agent in Charge Stacey Moy said the move “closes a major chapter in a multi-year investigation that exposed an international, elaborate scheme to sell counterfeit goods worldwide“.
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