LOS ANGELES, CA - Two individuals who are Chinese nationals were sentenced to federal prison on August 28 for leading a scheme to defraud Apple Inc. of at least $16.2 million by fraudulently "returning" thousands of counterfeit iPhones, iPads and other Apple devices.
U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) worked with IRS-Criminal Investigation, the U.S. Postal Inspection Service and the Los Angeles Police Department to dismantle a large-scale, trans-Pacific fraud ring based in the Inland Empire, a Southern California region comprising Riverside and San Bernardino counties, according to a press release from ICE.
A U.S. district judge sentenced 41-year-old Wenhui Huang, of Chico Hills, the group's ringleader and an illegal immigrant, to 78 months in federal prison and ordered him to pay $16,239,254 in restitution. The judge also sentenced 39-year-old Yang Song, of Corona, the group's second-in-command, to 57 months in federal prison, and ordered him to pay $16,977,415 in restitution.
Huang and Song are the final defendants to be sentenced in this case. Huang pleaded guilty in May 2025 to one count of conspiracy to commit wire fraud and mail fraud, one count of conspiracy to traffic in counterfeit goods, and one count of engaging in monetary transactions in property derived from specified unlawful activity, according to the Department of Justice (DOJ).
Song also pleaded guilty in June 2025 to counts of conspiracy to commit wire and mail fraud, wire fraud, mail fraud, and conspiracy to traffic in counterfeit goods, in addition to one count of conspiracy to commit money laundering for a separate scheme involving the funneling of proceeds of various frauds to overseas.
Some of the false reasons given to Apple store employees were because the devices purportedly would not power on, were physically damaged, or had other defects. But the defendants knew that the Apple devices they were returning were counterfeit and fraudulently used the identification numbers and serial numbers of real people’s Apple devices to victimize both Apple and the device owners.
"HSI’s mandate is to protect the integrity of the U.S. marketplace by investigating the illegal movement of goods, technology, and funds across our borders,” said HSI Los Angeles acting Special Agent in Charge Erin Burke.
"This investigation highlights our commitment to identifying and dismantling sophisticated, international fraud networks. These defendants weaponized counterfeit goods to defraud an American company of millions, but today’s sentencing proves that these global criminal schemes will be met with a rigorous federal response," Burke added.
Two other defendants, 28-year-old Zhengxuan Hu, of Alhambra, an illegal immigrant, and 39-year-old Junwei Jiang, of East Los Angeles, were previously sentenced to prison terms of 24 months and 36 months, respectively, for their role in the scheme and were ordered to pay $16,239,254 in restitution.
The Department of Homeland Security is actively "targeting immigration violators who threaten public safety and undermine the rule of law," according to the press release.
Comments