A Chinese man has been sentenced to pay compensation and confiscate large sums of money for his involvement in replacing many counterfeit IPhones with original ones under warranty, and this fraudulent operation cost Apple a $1 million loss!
How was Apple deceived by the fraud?
The owner of the fraud is 32-year-old Chinese Haiteng Wu, a graduate of the Virginia State School of Engineering. Wu was able to secure hundreds of fake IPhones through his Hong Kong partners, which contained IMEI addresses belonging to the original iPhone valid.
After obtaining counterfeit phones, companies with unreal names go to Apple
Wu not only did it, but hired others to participate in the crime, hiring his wife Jiahong Cai and teang Liu, using false identity documents, aliases and several commercial mailboxes, and in three and a half years Apple was defrauded with a total loss of nearly $1 million.
Penalty for Apple fraud
Wu and his associates were arrested in December 2019 and have been in prison ever since, pleading guilty in May 2020 to conspiracy to commit fraud by mail, and Judge Sullivan sentenced him last Tuesday to $987,000 in damages and confiscation of funds of the same value.
Wu's wife Cai pleaded guilty to the same charge as her husband and was sentenced to five months in prison, while Liu also pleaded guilty to the same charge and will be sentenced next month. The investigations were conducted by the U.S. Department of Homeland Security and the U.S. Postal Inspection Service.
For the record, this is not the first time apple has been defrauded by replacing hundreds of fake phones with the other intact, engineering student Quan Jiang was sentenced in 2019 to three years and a month in prison by the U.S. judiciary on the same charge and the same amount of losses!
We wonder how Apple made the same mistake twice without taking precautions?! How can a highly developed giant make this mistake?!
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