Two individuals, Haotian Sun and Pengfei Xue, have been found guilty of participating in a $3 million iPhone repair scheme involving over 5,000 iPhones, according to a report by 9to5Mac. The federal jury reached the verdict after determining that Sun and Xue were part of a sophisticated plan to defraud Apple out of millions of dollars’ worth of iPhones.

The scam involved submitting counterfeit iPhones to Apple for repair, which would then be replaced by Apple with genuine iPhones. Between May 2017 and September 2019, Sun, Xue, and other conspirators defrauded Apple by submitting counterfeit iPhones for repair and receiving genuine replacement iPhones in return. The counterfeit iPhones were shipped from Hong Kong to UPS mailboxes in the D.C. Metropolitan area before being submitted to Apple retail stores and authorized service providers.

The government’s evidence revealed that the conspirators submitted more than 5,000 counterfeit phones to Apple during the scheme, intending to cause a loss of over $3 million. Sun and Xue used various aliases during the scheme and were arrested on December 5, 2019. They could potentially face up to 20 years in prison, with sentencing scheduled for June 21, 2024.

This case is reminiscent of another fraudulent activity involving fake iPhones and iPads from China, where the perpetrators received 41 months in prison for a $6.1 million fraud scheme. The modus operandi was similar: import fake devices from China, exchange them for genuine Apple products, and sell them abroad for profit.

It is important to note that defrauding telecommunications companies or manufacturers like Apple can lead to severe legal consequences. At Phones Canada, we prioritize integrity and encourage our customers to engage in honest business practices. We aim to provide reliable information and quality products without compromising ethical standards.

Stay tuned for more updates on telecommunications news and ethical business practices on our blog!