News WTF 10-04-2024 at 16:25 comment views icon

Large-scale iPhone scam: two Chinese get prison sentences for defrauding Apple of $2.5 million

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Ihor Panchenko

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Large-scale iPhone scam: two Chinese get prison sentences for defrauding Apple of $2.5 million

U.S. Department of Justice announced sentence to two men who defrauded Apple of millions of dollars using fake iPhones.

Haotian Sun, a 34-year-old Chinese citizen living in Baltimore, was sentenced to 57 months in prison. The court also ordered three years of post-release supervision and ordered him to pay Apple $1,072,200 in compensation. In addition, Sun has to pay $53,610 as a monetary penalty.

The second convicted person is 34-year-old Pengfei Xue, also a Chinese citizen living in Germantown, Maryland. His sentence includes 54 months in prison, three years of post-release supervision, and payment of $397,000 in restitution to Apple. Xue also has to pay $19,890 as a monetary penalty.

According to court documents, for two years, the attackers had been sending fake iPhones to Apple for repair. The company replaced them with original devices. The fraudsters received counterfeit phones (with fake IMEIs) from Hong Kong. The conspirators shipped more than 6,000 such phones to Apple, which resulted in $2.5 million in losses to the company.

Source: Neowin



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