U.S. man sentenced to prison for smuggling counterfeit iPhones, iPads, costing Apple $6 million

Authorities seized two of his homes, $120,370 and more than 200 Apple devices.

A US man who led an international ring that trafficked counterfeit Apple products has been sentenced to 51 months (four years and three months) in prison. According to the U.S. Attorney’s Office for the Southern District of California, Zhiwei “Allen” Liao, who lives in San Diego, defrauded Apple of $6.1 million by exchanging fakes from the United States and Canada for genuine iPhones and iPads from China. Authorities seized two homes, $120,370 and more than 200 Apple devices from the 34-year-old man.

The official press release also stated that Liao Zhiwei and his brothers Liao Zhimin and Liao Zhiting imported counterfeit iPhones and iPads from China. “These counterfeit iPhones and iPads appeared to be genuine and contained identification codes that matched those on the real iPhones and iPads ( IMEI and serial number)”. Under warranty and has been previously sold to customers in the United States and Canada.”

The press release further states: “Zhiwei Liao then shipped the fraudulently obtained genuine Apple products primarily to China, where they were sold at inflated prices.”

According to court documents, the fraud scheme involved more than 10,000 counterfeit iPhones and iPads.

“At the direction of the Liu brothers, the conspirators traveled to hundreds of Apple stores across the United States and Canada in an attempt to exchange counterfeit iPhones and iPads for genuine iPhones and iPads,” the document states.

The judge defended the “significant custodial sentence”, saying Liu was the organizer and leader of a wide-ranging international criminal organization that had been trafficking in counterfeit products for many years.

“Mr. Liao’s sentencing opens an important chapter in a multi-year investigation that uncovered a scheme that sold counterfeit goods around the world,” said FBI San Diego Special Agent in Charge Stacey Moy. A meticulously orchestrated international scheme.” “This investigation would not have been successful without the unwavering dedication and persistence of our law enforcement partners. We will continue to work diligently in the pursuit of justice to help preserve the integrity of our economy.”

according to san diego union-tribuneIn 2019, FBI agents investigated Liao Zhiwei and his family for the first time.