The Liao family has been making headlines for their involvement in a massive counterfeit Apple products scheme. Zhiwei “Allen” Liao, the leader of this international hustle, has been sentenced to 51 months in prison for his role in trafficking fake iPhones and iPads. Along with jail time, he is also forfeiting two homes, $120,370 in US cash, and over 200 Apple gadgets seized during the investigation.

According to US Attorney Tara McGrath, this fraud not only victimized Apple Inc. but also thousands of Apple product owners across North America. The theft of intellectual property and the sale of counterfeit goods are serious global issues with significant economic implications.

Here’s how the scheme worked:

– The Liao brothers imported counterfeit iPhones and iPads from China that closely resembled genuine Apple products.
– These fake devices had ID numbers (IMEI and serial numbers) matching those on real devices sold in the US and Canada.
– Their co-conspirators would then visit Apple Stores in both countries to exchange the counterfeits for authentic products.
– As a result of this scam, Apple suffered a $6.1 million loss.

Zhiwei Liao would then ship the legitimate Apple products to China where they were sold for profit. It’s unclear how they obtained real serial numbers, but having them on the fake devices allowed them to return them to Apple for replacements without raising suspicion.

Despite passing an initial examination by non-technical sales staff, these counterfeit devices were eventually discovered, leading to legal consequences for the Liao family. This serves as a cautionary tale about the risks involved in dealing with counterfeit goods and engaging in fraudulent activities within the telecommunications industry.