Feds Indict 14 Over Alleged Scheme To Defraud Apple
Arthur T Knackerbracket has found the following story:
US federal authorities on Wednesday announced the arrests of 11 people from a group of 14 indicted for tricking Apple into accepting about almost 10,000 fake iPhones and iPads and replacing them with genuine iDevices.
The US Attorney's Office for the Southern District of California said it had served 11 search warrants covering two businesses and several homes and vehicles in the San Diego, California, area and come up with $250,000 in cash and 90 iPhones that will be tested for authenticity.
Three individuals said to be involved in the scheme remain at large including Xiamon Zhong, believed to be in China, Charley Hsu of San Diego and Hyo Weon Yang of San Francisco.
The raids stem from the indictments related to an alleged scheme to import fake iPhones and iPads from China, marked with IMEI and serial numbers copied from authentic devices, in order to return them to Apple for genuine replacements, which were then shipped back to China to be sold there.
The US Attorney's Office says three brothers, naturalized US citizens born in China, ran the operation - Liao Zhiwei, Liao Zhimin and Liao Zhiting - which led to losses Apple puts at more than $6m. The other defendants are said to be mostly naturalized citizens from China, Russia, and Vietnam.
In a statement, US Attorney Robert Brewer said this prosecution is about more than just monetary losses. "The manufacture of counterfeit goods - and their use to defraud US companies - seeks to fundamentally undermine the marketplace and harms innocent people whose identities were stolen in furtherance of these activities," said Brewer.
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