IPhone replacement scam by college students costs Apple almost $1M

Apple'repaired thousands of fake iPhones before it smelled a scam

According to the federal government, two college students from OR was able to scam Apple allegedly out of nearly $900,000 through a scheme that involved counterfeit iPhones.

Yangyang Zhou and Quan Jiang, who were both engineering students in the USA on F-1 student visas at the time, attempted the switcheroo with 3,069 iPhones from April 2017 through March 2018, prosecutors said in a criminal complaint filed in Portland, Ore. They would send in the knockoffs for repairs or replacement, claiming they wouldn't power on.

Authorities allege the students pulled off a convoluted scheme in order to wring Apple of the cash by using counterfeit devices and exploiting Apple's return policy. Once in the USA, the devices were sent to the company for repairs or replacements. The students earned from the profits. Jiang is accused of committing wire fraud and illegally trafficking goods, while Zhou is accused of exporting goods illegally. Apparently, Apple didn't require proof of purchase to replace the phones.

Jiang and Zhao both claim they were uninformed that the original phones were fake.

CAIR warns of increasing Islamophobia after NY arrests
He said he was a patriot, he loves the President and that he hates radical Muslims in our government, the complaint said. He told investigators he had said "if our forefathers were still alive, they'd put a bullet in her head".

The replaced 1493 units of Apple iPhones reported cost the phone maker $895,800 which is approximately Rs 6 crore. The investigation revealed that Jiang, who took care of placing return requests with Apple, made 3,096 iPhone warranty claims. Each of those new phones was then shipped overseas and sold for a healthy profit, with a share being sent to Jiang's mother who then transferred it to Jiang's bank account. That means he could face fines of up to $US2 million ($2.8 million) or 10 years in prison, or both, on the counterfeit charge. He was put in federal custody but was later released on Global Positioning System monitoring.

The big break in the case came previous year when federal agents raided Jiang's OR residence and found over 300 counterfeit iPhones, shipping records, warranty claim submissions, and boxes addressed to Zhou, his alleged accomplice, according to the report. Apple's legal counsel said the company sent two letters in 2017 to Jiang at Zhou's address, placing him "on notice that he was importing counterfeit Apple products". They also discovered several boxes that had been addressed to Zhou, who has been named as the accomplice of Jiang.

And just last month, a Lithuanian man pled guilty to scamming Google and Facebook out of $100 million by sending them fake invoices via email and posing as a Taiwanese hardware company.

Related News:

Most liked

Chelsea unsure being clear to sign Higuain as Sarri wants deal
Barcelona ace Suarez has 129 goals in just 159 La Liga appearances and previously graced the Premier League with Liverpool . Higuain still has time to become a fan favourite, if he can fire Chelsea to a top four finish and also Europa League glory.

Democrat Tim Ryan announces presidential bid
It's been reported Ryan on Sunday will be in Iowa, a bellwether presidential state he's visited at least once already this year. According to The Vindicator , citing sources close to the congressman, a rally in downtown Youngstown will follow on Saturday.

New ‘Borderlands 3’ Trailer and Details Shared
Aside from including far more plastic than is healthy for human life on Earth, this edition tells us a little more about Borderlands 3 .

Stephen Curry Credits Contact Lenses For Shooting Resurgence
He may even reach that mark sooner considering he feels he's been gifted with a new set of eyes. "No, I'm serious. However, his career average beforehand was a far higher 46.5 per-cent - suggesting Curry was struggling.

IDF Recovers Body of Lost Israeli Soldier Zachary Baumel Decades After Death
Two other Israeli tank crew members are still listed by the military as missing in action from the June 10-11, 1982 battle. The fate of Israeli air force navigator Ron Arad, whose plane crashed in Lebanon in 1986, has also never been clarified.

Lauren London, girlfriend of Nipsey Hussle speaks out
TMZ wrote that it may have started because Nipsey shunned Holder, who wanted to have a conversation with the rapper. Among the photos shared, London included a sweet image of Hussle throwing their two-year-old son Kross in the air.

NATO makes pitch for trans-Atlantic unity
Europeans do not have a promising historical track record of going it alone in the face of a determined foe. Trump as NATO's "most urgent, and often most hard , problem", they wrote in their report.

Prince Harry, Meghan Markle have moved to Frogmore Cottage in Windsor
Prince Harry joined Royal Marines, Royal Navy sailors and other Armed Forces troops for a curry lunch today. Nearby Windsor Castle is one of the monarch's primary residences.

House of Commons suspended after water pours through ceiling
Parliament needs urgent repairs but MPs have been non-committal over if and when they should move elsewhere while work is done. Proceedings carried on for a few minutes, but the noise of water pouring into the press gallery soon became overwhelming.

Trump Wants to Name Political Loyalists to Federal Reserve Board
It features a photo of the president on its website and says, "We must protect Donald Trump and his agenda from impeachment". The White House did not immediately respond to a request for comment on the reports.

Russian president, Israeli premier meet in Moscow
More than 400,000 Israelis live in West Bank settlements, while a further 200,000 live in settlements in occupied east Jerusalem . The precise location of his remains was not disclosed, but Netanyahu said Russian soldiers had risked their lives to get them.

When should the Colts address WR position in NFL Draft?
Terrell Owens, a recent inductee to the Pro Football Hall of Fame , will announce the San Francisco 49ers ' third-round pick. Wayne himself was the Colts' first-round (30th-overall) selection in the 2001 NFL Draft out of the University of Miami.

Technical Glitch Disrupts Early Morning Flights At Bay Area Airports, Nationwide
US airlines are struggling to get back on schedule Monday after a system-wide computer outage hit several major carriers. JetBlue added it was still dealing with residual delays, while United said about 150 flights were delayed.

Facebook unlikely to be concerned by Australia's tough new social media law
The crime would be punishable by three years in prison and a fine of 10.5 million Australian dollars. After which, Parliament will sit for elections in May.

United Kingdom government, opposition continue search for Brexit plan
Ms Cooper said: "We are now in a really risky situation with a serious and growing risk of no-deal in 10 days' time". He chose to reject the idea of having more indicative votes on Monday.