iPhone fraudster jailed for 51 months for costing Apple $6 million - Times of India

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Zhiwei "Allen" Liao orchestrated a sophisticated scheme with counterfeit iPhones and iPads, causing a $6 million loss to Apple. The operation involved a network sourcing fake devices, exploiting Apple's warranty process, and was uncovered by the FBI.

In a case that exposed a complex scheme to defraud

Apple

, Zhiwei "Allen" Liao faced the consequences of his actions. Liao's carefully crafted plan orchestrated a significant financial loss of approximately $6 million to the technology giant. The scheme involved

counterfeit iPhones

and iPads, which were intricately crafted to appear genuine and indistinguishable from authentic devices.

Liao's operation was highly sophisticated and meticulously executed. He established a network of individuals who procured counterfeit devices from overseas manufacturers. These counterfeit products were then expertly packaged and disguised to match the appearance of genuine Apple devices. The counterfeits were strategically introduced into the warranty claim process, exploiting Apple's customer support policies.

The scam, which spanned several years, was meticulously planned and executed by Liao and his co-conspirators, including his two brothers, Zhimin Liao and Zhiting Liao. The trio sourced high-quality counterfeit devices from China, complete with serial numbers matching those of authentic products sold in the United States. These fake devices were then presented as defective at various Apple stores, where unsuspecting staff, deceived by the authenticity of the serial numbers, provided replacement devices under warranty.

The replaced genuine devices were then diverted into the black market in China, where they were sold at significantly lower prices, generating substantial profits for Liao and his associates.

The scheme was eventually uncovered by a joint investigation between the Federal Bureau of Investigation (FBI) and the San Diego Police Department, leading to the arrest and conviction of the Liao brothers. In addition to the prison sentence, the court ordered the forfeiture of over $4 million in assets, including luxury apartments and multiple Apple devices found in the possession of the fraudsters.

US District Judge Cynthia Ann Bashant emphasised the gravity of the crime, highlighting

Zhiwei Liao

's role as the mastermind behind this extensive

international criminal organisation

. In October 2023, Zhimin Liao and Zhiting Liao, co-conspirators and brothers of the defendant, were sentenced to 41 months of imprisonment. The main accused has been sent to prison for 51 months.