The tech giant ‘Apple’ has been scammed to the tune of $895,000 by the a Chinese, a former engineering student at a community College, the accused Oregon is said to have been sending fake iPhones to Apple, saying that they wouldn’t turn on and should be replaced under warranty.
Oregon risk a 10 years prison sentence and a $2 million fine for defrauding Apple of 1,500 iPhones worth $895,000.
The funny thing is that Jiang didn’t just submit a few couple of devices to Apple, he delivered in person or shipped to Apple around 3,000 of the fake iPhones. To maintain their policy , Apple sent almost 1,500 iPhones replacement. each worth $600 resale value
Jiang was obviously enjoying the ride . In fact, the makers of the fake iPhones were so busy making the fake iPhones that they didn’t even bother imbedding working OS on the fake iPhones which made it difficult for Apple’s technicians to ascertain the counterfeit devices.
A court document that exposed the vulnerability that jiang exploited was presented by Homeland security Investigations agent Thomas Duffy
“Submission of an iPhone that will not power on is critical to perpetuating iPhone warranty fraud, as the phone will not be able to be immediately examined or repaired by Apple technicians, triggering the Apple iPhone replacement process as part of its product warranty policy,” the document said, quoting Apple’s brand protection representative Adrian Punderson.
According investigations by to the US Attorney’s office in Portland, Jiang is said to import the counterfeit devices from Hong Kong and then submit them to Apple with different identities. After Apples replacement Jiang would then forward them to China to be sold.
Jiang associates would then pay Jiang’s mother who lives in China, who then deposits the money into Jiang’s bank account.
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Apple, however, realized that something was fishy in June 30, 2017 and then sent a “cease and desist” letter through its legal counsel in Corvallis where about 150 warranty claims came from. The lawyers told Jiang that he was importing counterfeit Apple products and that the company knew about that. Jiang didn’t respond until the lawyers sent a second letter.
The US Attorney’s office in Portland highlighted that Jiang pleaded guilty in a federal court on Wednesday to trafficking in counterfeit goods.
Though Apple rejected 1,576 warranty claims emanating from Jiang. But the 1,493 claims which Apple honoured cost the company about $895,000 loss.
August 28 is the date set aside for The sentencing, Jiang faces a maximum sentence of 10 years in prison, a $2 million fine or twice his process. However, the US Attorney’s office will recommend a prison sentence of three years and at least $200,000 in restitution to Apple
but that will be under a plea agreement.
