Apple iPhone fraud: Con artist sentenced to over 4 years jail for $6 million rip-off

Apple iPhone fraud: Con artist sentenced to over 4 years jail for $6 million rip-off

A rip-off artist who price Apple over $6 million in alternative gadgets has been sentenced to 51 months in jail. Zhiwei ‘Allen’ Liao, alongside along with his two brothers, ran a fancy rip-off involving counterfeit Apple merchandise. The trio bought defective however convincing pretend iPhones and iPads from China, assigned them with unique serial numbers of Apple merchandise offered within the US, and claimed guarantee replacements for non-working gadgets at Apple shops.

In keeping with 9to5Mac, the genuine Apple replacements had been then shipped again to China and offered. Previous to this, the brothers had executed an identical rip-off, pocketing an estimated $1 million. Liao, the chief orchestrator, meticulously managed the operation to evade legislation enforcement, resulting in his prolonged jail sentence. The rip-off, which operated for a number of years, was lastly busted by a joint effort between the US investigating company FBI and the San Diego Police Division. 

The rip-off concerned an in depth and elaborate scheme centered round counterfeit Apple merchandise. Right here’s a simplified breakdown of the way it labored:

Acquisition of Counterfeit Gadgets: The fraudsters purchased extremely convincing, but non-functional, counterfeit iPhones and iPads from China. These pretend gadgets had been meticulously crafted to seem like the actual deal.

Manipulating Serial Numbers: Every counterfeit gadget was assigned a serial quantity that matched a real Apple product offered in the US, basically “cloning” the identification of authentic gadgets nonetheless beneath guarantee.

Recruiting People for Returns: The group then recruited a whole lot of individuals to behave as odd clients. These people had been tasked with taking the counterfeit gadgets into Apple shops, pretending to be real clients dealing with points with their merchandise.

Exploiting Apple’s Guarantee Coverage: When these pretend gadgets had been introduced at Apple shops, they wouldn’t energy on, prompting employees to examine their serial numbers. Discovering that the serial numbers matched these of merchandise beneath guarantee, Apple, following its coverage to make sure buyer satisfaction, changed the counterfeit objects with real Apple merchandise.

Export and Sale of Real Merchandise: The real replacements issued by Apple had been then smuggled again to China. As soon as there, they had been offered as new, real Apple merchandise, producing important income for the scammers.

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