Quan Jiang moved from China to the United States to study engineering, but ended up getting involved in a scheme that cost Apple up to $ 900,000: he sent fake iPhones to the company, saying they didn’t work, to get a new cell phone and resell it. As a result, he was sentenced to three years and a month in prison.
Jiang pleaded guilty in April to trafficking in counterfeit goods. He moved to the USA in 2012 on a student visa and was not allowed to work. The boy enrolled in engineering at Oregon State University, but dropped out because he doesn’t understand English so well.
Lawyer Celia Howes claims that Jiang did not organize the fraud: he reportedly discovered this through a college colleague, without immediately acknowledging that he received counterfeit cell phones to exchange at Apple. The scheme’s leaders apparently operate in China.
Apple received 3,000 orders to exchange fake iPhones
According to prosecutor Ryan Bounds, who represents the U.S. federal government, Jiang received about 3,000 fake iPhones from Hong Kong between January 2016 and February 2018, coordinating deliveries to different addresses in the states of Oregon, Washington and Colorado.
Jiang sent the devices to Apple, saying they didn’t work and that he wanted a warranty exchange. Over that period, the company delivered 1,493 iPhones, with a resale value of approximately $ 600 each.
According to Apple, Jiang used more than 250 names and 1,330 e-mail addresses to send 3,069 fraudulent exchange orders under warranty. He earned $ 20 to $ 30 for each new iPhone he sent back to China, earning a total of $ 40,000, says attorney Bounds.
The sentence came out on Monday (21): Jiang was sentenced to three years and a month in a federal prison (the maximum was 10 years). He also paid $ 200,000 to Apple as a refund – his parents sold the house in China to get that money – and had to hand over his Mercedez-Benz CLA 250. After serving his sentence, he could be deported.