In a sophisticated fraud scheme, Apple Inc. has suffered a loss of approximately $12 million. The scam involved counterfeit iPhones being returned to Apple Stores for genuine replacements, which were then sold for profit. This operation was carried out on an industrial scale, with five individuals charged with fraud related to the scheme.
The fraudulent activity spanned from December 2014 to March 2024, with the perpetrators using fake lookalike iPhone models equipped with stolen identification numbers. These identifiers made the phones appear as legitimate Apple products sold in the US and covered under AppleCare warranty. The scheme potentially affected genuine customers’ ability to claim legitimate warranty repairs, as the identifiers would have been processed by Apple’s systems previously.
To avoid detection, the co-conspirators employed various tactics, including using fake addresses and aliases, renting PO boxes, and visiting up to ten Apple retail stores in California in a single day to exchange the counterfeit devices.
The case is now set to go to trial, and if convicted, the defendants face significant prison time on each of the 22 counts, which include wire fraud, mail fraud, aggravated identity theft, and trafficking of counterfeit goods.
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