Two Men Sentenced for Defrauding Apple of Over ₹21 Crore in Fake iPhone Scheme


Two men, Haotian Sun and Pengfei Xue, were sentenced for defrauding Apple of over ₹21 crore (approximately $2.5 million) in a scheme involving counterfeit iPhones. Sun received a 57-month prison sentence, while Xue was sentenced to 54 months. Both were ordered to pay substantial restitution to Apple. Between May 2017 and September 2019, they, along with co-conspirators, submitted fake iPhones for repairs and received genuine replacements. They shipped counterfeit devices from Hong Kong to various locations in the Washington, D.C. area, ultimately submitting over 6,000 fake iPhones to Apple. Both men were found guilty of conspiracy to commit mail fraud after a five-day jury trial.

 


In a notable fraud case, two men were sentenced for their roles in a scheme that defrauded Apple of millions of dollars in iPhones. This incident underscores the lengths to which individuals will go for quick financial gain, often at the expense of major companies. As technology evolves, so do the tactics employed by fraudsters, highlighting the need for vigilance among consumers and corporations alike.

Haotian Sun, 34, a Chinese national residing in Baltimore, was sentenced to 57 months in prison, followed by three years of supervised release. He was also ordered to pay Apple approximately ₹9 crore ($1,072,200) in restitution, along with a forfeiture judgment of around ₹45 lakhs ($53,610). His accomplice, Pengfei Xue, also 34 and living in Germantown, Maryland, received a 54-month prison sentence and was ordered to pay ₹3 crore ($397,800) in restitution, along with a forfeiture judgment of ₹16 lakhs ($19,890).

Court documents reveal that from May 2017 to September 2019, Sun, Xue, and their co-conspirators ran the scam by submitting counterfeit iPhones to Apple for repair and receiving genuine replacements. They orchestrated their scheme by shipping fake iPhones from Hong Kong to various UPS mailboxes in the Washington, D.C. area. Using counterfeit serial and IMEI numbers, they submitted these fake devices to Apple retail stores and authorized service providers.

During their operation, they submitted over 6,000 counterfeit iPhones to Apple, resulting in losses exceeding ₹21 crore ($2.5 million). Sun and Xue were convicted following a five-day jury trial, where both were found guilty of conspiracy to commit mail fraud.

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