Two sentenced for $16 million Apple counterfeit device fraud scheme

Two individuals have been sentenced to federal prison for leading a massive transpacific fraud scheme that defrauded Apple Inc. of more than $16 million. The operation, which ran from December 2015 to March 2024, involved smuggling counterfeit iPhones and iPads from China to the United States.

Wenhui Huang, 41, was sentenced to 78 months in prison and ordered to pay over $16.2 million in restitution. Yang Song, 39, received a 57-month sentence and was ordered to pay approximately $17 million in restitution. The group utilized a sophisticated method where they applied the serial numbers and identification codes of genuine, warrantied Apple products to counterfeit devices.

By presenting these fake devices at various Apple retail locations across Southern California—including Beverly Hills, Pasadena, and Irvine—the group claimed the products were defective to obtain genuine replacements. The authentic devices were then shipped to accomplices in the U.S. and overseas to be resold for profit. Four other individuals were also convicted in connection with the scheme.