Man pleads guilty to trafficking counterfeit iPhones in Oregon return scam

Posted:
in iPhone
A Chinese student pleaded guilty in Oregon on Wednesday to one count of trafficking counterfeit iPhones, which he used to dupe Apple into giving him real units for sale in China.

Apple Washington Square


Between January 2016 and February 2018, Quan Jiang regularly received packages containing as many as 20 to 30 inoperable, counterfeit iPhones from partners in Hong Kong, said the U.S. Attorney's Office for the District of Oregon. Jiang then used fake names to submit iPhones for warranty replacement, whether online or at one of the state's three Apple stores.

Jiang didn't receive his payouts directly. Instead, an associate paid his mother -- also living in China -- who would then transfer the money to Jiang's bank account.

Ultimately Jiang imported over 2,000 counterfeit devices, which he used to secure about 1,500 authentic iPhones, each valued at around $600 in Chinese resale.

A sentencing hearing is scheduled for Aug. 28. A maximum penalty could include 10 years in prison, three years of supervised release, and a fine of $2,000,000 or twice illegal proceeds, whichever might be higher. Jiang has already agreed to pay Apple $200,000, which could reduce his sentence.

It's not yet clear what will happen to fellow student Yanyyang Zhou, who was arrested alongside Jiang in April. At the time, Apple estimated the impact of the fraud at $895,800.
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Comments

  • Reply 1 of 22
    sflocalsflocal Posts: 4,614member
    A sentencing hearing is scheduled for Aug. 28. A maximum penalty could include 10 years in prison, three years of supervised release, and a fine of $2,000,000 or twice illegal proceeds, whichever might be higher. Jiang has already agreed to pay Apple $200,000, which could reduce his sentence.

    It's not yet clear what will happen to fellow student Yanyyang Zhou, who was arrested alongside Jiang in April. At the time, Apple estimated the impact of the fraud at $895,800.
    I wonder why Apple is accepting $200K when it estimates the fraud at almost $900K?  This degenerate should see serious time in jail.  There was an article not too long ago about Apple's problem dealing with fraud in Asia, particularly China to the point of it making it so expensive that the amount was more than a rounding error on Apple's Asian financials.

    What a POS this guy is.  Since he's a Chinese national, I hope they deport his useless backside back to China.
    jbdragonracerhomie3macplusplus
  • Reply 2 of 22
    chasmchasm Posts: 1,524member
    sflocal said:
    I wonder why Apple is accepting $200K when it estimates the fraud at almost $900K?
    As you yourself quoted FTA, there's another accomplice we don't know the legal status of. Presumably Apple will be getting more money from that person.

    Quan Jiang has pretty much thrown away his chance to live in any other country than China thanks to this fraud conviction, so that and having to surrender what is presumably his profit from the scheme is pretty severe punishment. The other fellow is likely to have it even worse.
  • Reply 3 of 22
    laytechlaytech Posts: 142member
    What half these selfish thieves don't care about, whether its fraud of Apple products, fraud of car insurance, house insurance, shoplifting or otherwise, is that it drives up the cost of everything for everyone. Businesses factor theft, fraud and other associated costs into their product or service, so all this does is drive up the cost of all products. Imagine if theft and fraud did not exist and how much less goods would potentially cost...
    racerhomie3
  • Reply 4 of 22
    tokyojimutokyojimu Posts: 417member
    sflocal said:
    I hope they deport his useless backside back to China.
    Where he’ll be hailed as a hero and given a free apartment. 
    aknabi
  • Reply 5 of 22
    hentaiboyhentaiboy Posts: 953member
    So just to be clear, when perp handed over a 'broken' phone for warranty, the repair staff weren't able to tell that it was counterfeit on the spot? 

    And he was able to repeat this 1,500 times?  :/
    edited May 22 jbdragonstompy
  • Reply 6 of 22
    jungmarkjungmark Posts: 6,687member
    Why would anyone think they could get away with something like this? 
  • Reply 7 of 22
    jungmark said:
    Why would anyone think they could get away with something like this? 
    "Between January 2016 and February 2018, Quan Jiang regularly received packages containing as many as 20 to 30 inoperable, counterfeit iPhones from partners in Hong Kong,..  Ultimately Jiang imported over 2,000 counterfeit devices, which he used to secure about 1,500 authentic iPhones..."

    They probably thought they could get away with it because they did get away with it for two years.  
  • Reply 8 of 22
    apple ][apple ][ Posts: 8,650member
    Fraud was also highest in the world at certain Apple Stores in China. I guess that's what happens in communist countries, where corruption, fraud, scams and criminal behavior are widespread and much higher than other places. Communism breeds such unethical, sleazy behavioral traits.
    edited May 22 racerhomie3
  • Reply 9 of 22
    the monkthe monk Posts: 47member
    jungmark said:
    Why would anyone think they could get away with something like this? 
    He did get away with it. About 1499 times.
  • Reply 10 of 22
    KuyangkohKuyangkoh Posts: 326member
    hentaiboy said:
    So just to be clear, when perp handed over a 'broken' phone for warranty, the repair staff weren't able to tell that it was counterfeit on the spot? 

    And he was able to repeat this 1,500 times?  :/
    Yeah.....what the hell are theses geniuses doing? 1500 times?? They must be part of the scheme 
  • Reply 11 of 22
    65026502 Posts: 254member
    the monk said:
    jungmark said:
    Why would anyone think they could get away with something like this? 
    He did get away with it. About 1499 times.
    And I'm sure he'll continue to get away with it and get a light, or likely no, sentence and be on the first plane back to china. There is no nation dumber than us in what we let china do to our jobs, industry, schools and trade. Will we ever learn?
    lkrupp
  • Reply 12 of 22
    Johan42Johan42 Posts: 163member
    sflocal said:
    A sentencing hearing is scheduled for Aug. 28. A maximum penalty could include 10 years in prison, three years of supervised release, and a fine of $2,000,000 or twice illegal proceeds, whichever might be higher. Jiang has already agreed to pay Apple $200,000, which could reduce his sentence.

    It's not yet clear what will happen to fellow student Yanyyang Zhou, who was arrested alongside Jiang in April. At the time, Apple estimated the impact of the fraud at $895,800.
    I wonder why Apple is accepting $200K when it estimates the fraud at almost $900K?  This degenerate should see serious time in jail.  There was an article not too long ago about Apple's problem dealing with fraud in Asia, particularly China to the point of it making it so expensive that the amount was more than a rounding error on Apple's Asian financials.

    What a POS this guy is.  Since he's a Chinese national, I hope they deport his useless backside back to China.
    You’re such a drama queen. It wasn’t even a violent crime. Take a breath and return to your recliner.
  • Reply 13 of 22
    apple ][apple ][ Posts: 8,650member
    Johan42 said:
    You’re such a drama queen. It wasn’t even a violent crime. Take a breath and return to your recliner.
    Almost $1 Million in fraud is a serious crime, and who said there has to be violence involved?

    Were Bernie Madoff's crimes violent? I guess not a big deal then either. :#

    The criminal lowlife should be locked up for a very long time, and then they should be deported, never allowed to return.
    racerhomie3
  • Reply 14 of 22
    racerhomie3racerhomie3 Posts: 1,094member
    Johan42 said:
    sflocal said:
    A sentencing hearing is scheduled for Aug. 28. A maximum penalty could include 10 years in prison, three years of supervised release, and a fine of $2,000,000 or twice illegal proceeds, whichever might be higher. Jiang has already agreed to pay Apple $200,000, which could reduce his sentence.

    It's not yet clear what will happen to fellow student Yanyyang Zhou, who was arrested alongside Jiang in April. At the time, Apple estimated the impact of the fraud at $895,800.
    I wonder why Apple is accepting $200K when it estimates the fraud at almost $900K?  This degenerate should see serious time in jail.  There was an article not too long ago about Apple's problem dealing with fraud in Asia, particularly China to the point of it making it so expensive that the amount was more than a rounding error on Apple's Asian financials.

    What a POS this guy is.  Since he's a Chinese national, I hope they deport his useless backside back to China.
    You’re such a drama queen. It wasn’t even a violent crime. Take a breath and return to your recliner.
    $1 Million is a huge deal. You can get your head chopped off in Mexico for that money. This thief should be made an example of.
  • Reply 15 of 22
    sflocalsflocal Posts: 4,614member
    Johan42 said:
    sflocal said:
    I wonder why Apple is accepting $200K when it estimates the fraud at almost $900K?  This degenerate should see serious time in jail.  There was an article not too long ago about Apple's problem dealing with fraud in Asia, particularly China to the point of it making it so expensive that the amount was more than a rounding error on Apple's Asian financials.

    What a POS this guy is.  Since he's a Chinese national, I hope they deport his useless backside back to China.
    You’re such a drama queen. It wasn’t even a violent crime. Take a breath and return to your recliner.
    Quan Jiang?  Is that you?

    Actually... stealing a million dollars is a big deal.  That you don't think it is says a lot about your character, lacking a moral compass.

    Go back to the basement and let the adults talk.  
    edited May 23 macplusplus
  • Reply 16 of 22
    aknabiaknabi Posts: 159member
    sflocal said:
    Johan42 said:
    sflocal said:
    I wonder why Apple is accepting $200K when it estimates the fraud at almost $900K?  This degenerate should see serious time in jail.  There was an article not too long ago about Apple's problem dealing with fraud in Asia, particularly China to the point of it making it so expensive that the amount was more than a rounding error on Apple's Asian financials.

    What a POS this guy is.  Since he's a Chinese national, I hope they deport his useless backside back to China.
    You’re such a drama queen. It wasn’t even a violent crime. Take a breath and return to your recliner.
    Quan Jiang?  Is that you?

    Actually... stealing a million dollars is a big deal.  That you don't think it is says a lot about your character, lacking a moral compass.

    Go back to the basement and let the adults talk.  
    Indeed...Not Hot Dog
  • Reply 17 of 22
    lkrupplkrupp Posts: 7,067member
    hentaiboy said:
    So just to be clear, when perp handed over a 'broken' phone for warranty, the repair staff weren't able to tell that it was counterfeit on the spot? 

    And he was able to repeat this 1,500 times?  :/
    This should call into question the anecdotal ranting and ravings we see on tech blogs about how evil and stingy Apple is in replacing defective units. It appears Apple is actually overly generous in its replacement policies as this scam seems to show.
  • Reply 18 of 22
    Johan42Johan42 Posts: 163member
    apple ][ said:
    Johan42 said:
    You’re such a drama queen. It wasn’t even a violent crime. Take a breath and return to your recliner.
    Almost $1 Million in fraud is a serious crime, and who said there has to be violence involved?

    Were Bernie Madoff's crimes violent? I guess not a big deal then either. :#

    The criminal lowlife should be locked up for a very long time, and then they should be deported, never allowed to return.
    Johan42 said:
    sflocal said:
    A sentencing hearing is scheduled for Aug. 28. A maximum penalty could include 10 years in prison, three years of supervised release, and a fine of $2,000,000 or twice illegal proceeds, whichever might be higher. Jiang has already agreed to pay Apple $200,000, which could reduce his sentence.

    It's not yet clear what will happen to fellow student Yanyyang Zhou, who was arrested alongside Jiang in April. At the time, Apple estimated the impact of the fraud at $895,800.
    I wonder why Apple is accepting $200K when it estimates the fraud at almost $900K?  This degenerate should see serious time in jail.  There was an article not too long ago about Apple's problem dealing with fraud in Asia, particularly China to the point of it making it so expensive that the amount was more than a rounding error on Apple's Asian financials.

    What a POS this guy is.  Since he's a Chinese national, I hope they deport his useless backside back to China.
    You’re such a drama queen. It wasn’t even a violent crime. Take a breath and return to your recliner.
    $1 Million is a huge deal. You can get your head chopped off in Mexico for that money. This thief should be made an example of.
    sflocal said:
    Johan42 said:
    sflocal said:
    I wonder why Apple is accepting $200K when it estimates the fraud at almost $900K?  This degenerate should see serious time in jail.  There was an article not too long ago about Apple's problem dealing with fraud in Asia, particularly China to the point of it making it so expensive that the amount was more than a rounding error on Apple's Asian financials.

    What a POS this guy is.  Since he's a Chinese national, I hope they deport his useless backside back to China.
    You’re such a drama queen. It wasn’t even a violent crime. Take a breath and return to your recliner.
    Quan Jiang?  Is that you?

    Actually... stealing a million dollars is a big deal.  That you don't think it is says a lot about your character, lacking a moral compass.

    Go back to the basement and let the adults talk.  
    I’m sorry but where in my post did I say this crime wasn’t a “big deal”? Do yourselves a favor and stop trying to read between the lines.
  • Reply 19 of 22
    1st1st Posts: 362member
    You did say it wasn't even a violent crime - down play the financial crime, just like IP stealing that tick chaps off, especially, those put blood and sweat in it.  
  • Reply 20 of 22
    Johan42Johan42 Posts: 163member
    1st said:
    You did say it wasn't even a violent crime - down play the financial crime, just like IP stealing that tick chaps off, especially, those put blood and sweat in it.  
    It’s a serious crime but not a violent crime. His reaction to said crime was overly dramatic.
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