In the United States, a man who orchestrated an international ring involved in trafficking counterfeit Apple products has been handed a 51-month prison sentence (equivalent to four years and three months). The individual in question is Zhiwei “Allen” Liao, based in San Diego. His fraudulent scheme cost Apple a staggering $6.1 million.
Liao achieved this by surreptitiously substituting genuine iPhones and iPads from China with counterfeit ones in both the US and Canada. As part of the investigation, authorities seized two houses, $120,370, and over 200 Apple devices from the 34-year-old perpetrator.
According to the official release, Zhiwei Liao, in collaboration with his brothers Zhimin Liao and Zhiting Liao, engaged in the importation of counterfeit iPhones and iPads from China. These counterfeit devices were meticulously crafted to appear genuine, complete with identification numbers (IMEI and serial numbers) that precisely matched those found on legitimate iPhones and iPads.
Notably, these authentic-looking counterfeits were associated with devices that were still under warranty and had been previously sold to customers in both the United States and Canada.
“Zhiwei Liao then sent the fraudulently obtained, but genuine Apple products primarily to China where they were sold at a premium,” the release further said.
As per court documents, the fraudulent scheme encompassed over 10,000 counterfeit iPhones and iPads.
“At the direction of the Liao brothers, co-conspirators traveled to hundreds of Apple Stores across the United States and Canada, and attempted to exchange counterfeit iPhones and iPads for genuine iPhones and iPads,” said the document.
The judge staunchly upheld the “significant prison sentence”, emphasizing that Zhiwei Liao functioned as the mastermind and chief of an expansive international criminal syndicate. Over the course of several years, Liao orchestrated the trafficking of counterfeit products.
“Mr Liao’s sentencing closes a major chapter in a multi-year investigation that exposed an international, elaborate scheme to sell counterfeit goods worldwide,” said FBI San Diego Special Agent in Charge Stacey Moy.
“This investigation would not have been successful without the unwavering dedication and persistence of our law enforcement partners. We remain diligent in the pursuit of justice to help maintain the integrity of our economy.”
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