Saturday, April 06, 2019

Two Oregon college students from China, allegedly siponed nearly $900,000 out of Apple, through a scheme involving counterfeit iPhones from China.

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Two Chinese college students are accused of scamming Apple out of $900,000 with fake iPhones

Two college students from China who are studying in Oregon , allegedly managed to scam Apple out of nearly $900,000 through a scheme involving fake iPhones and Apple warranty program, according to the federal government.

The two students Quan Jiang and Yangyang Zhou, would get counterfeit iPhones from "an associate" in China, and allegedly submit the fake iPhones to Apple for repair under the company's warranty program.
Jiang, who was reportedly a student at Oregon State University at the time, according to Apple's records show over 3,000 submissions and claims in total attributed to Jiang. In every case, Jiang claimed that the iPhones could not be turned on, which turned out to be the crux of the scam, according to the government. Apple would in many cases, would send them authentic iPhones as replacements. In total, the pair submitted thousands of warranty claims for counterfeit iPhones through the end of 2017, according to complaints filed by the federal government in March 2018 and March 2019.
Jiang was accused of wire fraud and trafficking in counterfeit goods last year. He faces fines of up to $2 million and 10 years in prison for the trafficking accusation, and another possible 20 years in prison for wire fraud.

Zhou was studying engineering at Linn Benton Community College last spring, according to The Oregonian. Apple records show that over 200 iPhone warranty claims have been submitted in Zhou's name, the government wrote in a complaint, filed in March 2019, that accuses Zhou of submitting false or misleading information on an export declaration. Zhou faces fines of up to $10,000 and five years in prison.
Two Oregon college students from China, allegedly siponed nearly $900,000 out of Apple, through a scheme involving counterfeit iPhones from China.

Via CNBC

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