man in the United States has been sentenced to more than four years in prison for his involvement in a scheme that exploited Apple customer satisfaction policy using counterfeit iPhones and iPads. Zhiwei “Allen” Liao, along with his partners, operated a fraudulent operation that cost Apple millions of dollars. The scam involved importing fake Apple products from China and affixing legitimate Apple serial numbers to them.
Liao’s associates then returned these fake products to Apple stores, claiming they were malfunctioning. Trusting the validity of the serial numbers, Apple replaced the counterfeits with genuine iPhones and iPads. Liao’s group subsequently sold these authentic devices at a significant profit in China, resulting in losses exceeding $6 million for Apple.
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Following his arrest for orchestrating this extensive scam, Liao has been sentenced to 51 months in prison. Authorities have seized various assets, including homes, cash, and over 200 Apple devices. While Apple experienced financial losses as a result of this scheme, the broader implications extend to consumers. Such fraudulent activities may prompt companies to adopt more cautious approaches to their customer service policies, potentially disadvantaging genuine customers.
