A criminal ring has been busted for ripping off Apple for $12.3 million, resulting in the arrests of five men facing serious prison time. The men brought 16,000 counterfeit iPhone and iPad units to various Apple Store locations. The fake devices were so realistic that Apple Store employees exchanged them for real products.

The fake iPhone and iPad devices were non-functional and once exchanged, the genuine Apple products were shipped out of the country. United States Attorney Martin Estrada stated, “The defendants took advantage of Apple’s customer-service policies to steal over $12 million in merchandise.” This incident highlights the importance of companies not being victimized for being responsive to customer needs.

The five men, all Chinese nationals, have been taken into custody and are facing charges including aggravated identity theft, conspiracy to traffic in counterfeit goods, and conspiracy to commit wire fraud and mail fraud. If found guilty, they could face significant prison time.

To execute their plan, the criminals conspired with other ring members in China to ship non-working counterfeit iPhone and iPad units to southern California. The fake devices had identification numbers matching real Apple products still under warranty owned by U.S. consumers.

The defendants returned the fake devices to more than 10 Apple Stores in southern California including locations in Beverly Hills, Northridge, and Rancho Cucamonga. On some days, they visited multiple stores to swap out fake models for real ones.

This case serves as a reminder of the importance of vigilance against fraudulent activities within the telecommunications industry. It highlights the need for companies like Phones Canada to prioritize security measures to protect both their customers and their brand reputation from such scams.