In a significant blow to counterfeit electronics rings, the orchestrator of a vast international scheme involving over 10,000 fake Apple products has been sentenced to 51 months in prison. The operation, which hoodwinked Apple out of at least $6 million through a sophisticated return fraud scheme, saw the gang leader, known as Zhiwei Liao or "Allen," also ordered to forfeit a substantial amount of assets including over 200 Apple devices, more than $120,000 in cash, and two properties.
This operation spanned across continents, with the fraudsters acquiring counterfeit iPhones and iPads in China that bore the serial numbers of genuine devices under warranty in the U.S. These fake products were then "returned" to Apple stores, where they were exchanged for real ones under the guise of warranty claims. The genuine devices were subsequently sold in China, generating substantial illicit profits.
This saga highlights not only the cunning lengths to which counterfeit rings will go to exploit consumer trust and corporate policies but also the broader issue of intellectual property theft and its impact on the global economy. The successful culmination of this multi-year investigation by the FBI and the San Diego Police Department, resulting in 12 felony convictions and the seizure of millions in assets, marks a significant victory in the ongoing battle against counterfeit goods. However, it also serves as a stark reminder of the persistent challenges facing companies and law enforcement agencies worldwide in curbing the flow of counterfeit electronics.
