Two men sentenced for $16 million Apple fraud scheme

Two Chinese nationals residing in California's Inland Empire have been sentenced to federal prison for orchestrating a massive fraud scheme targeting Apple Inc. The operation, which ran from December 2015 to March 2024, involved importing counterfeit iPhones and iPads from China and exchanging them at Apple stores for genuine devices. The scheme caused Apple losses of at least $16.2 million.

Wenhui Huang, 41, of Chino Hills, was identified as the ringleader and sentenced to six years and six months in prison. He was also ordered to pay $16.2 million in restitution. Yang Song, 39, of Corona, served as the group's second-in-command and received a sentence of just under five years, with an order to pay $16.9 million in restitution.

The defendants used counterfeit devices programmed with real identification and serial numbers belonging to legitimate customers across the United States. This deception allowed them to exploit Apple's warranty system to obtain authentic products.