Two Chinese citizens residing in the inland Empire region of the United States have been sentenced to federal prison for their involvement in a large-scale trans-Pacific fraud scheme. According to the announcement from the Department of Justice on August 28, the two defendants orchestrated a scheme to return thousands of counterfeit iPhones, iPads, and other Apple products, defrauding Apple Inc. of at least $16.2 million. The headquarters of Apple Inc. is located in Cupertino, California.
Wenhui Huang, a 41-year-old from Chino Hills and the mastermind of the operation, who is also an illegal immigrant, was sentenced by Federal District Judge André Birotte Jr. to 78 months (6.5 years) in federal prison and ordered to pay $16,239,254 in restitution. Huang pleaded guilty in May 2025 to charges including conspiracy to commit wire and mail fraud, conspiracy to traffic in counterfeit goods, and engaging in financial transactions with criminally derived property.
Judge Birotte also sentenced the number two figure in the scheme, 39-year-old Yang Song from Corona, to 57 months (4 years, 9 months) in federal prison and ordered him to pay $16,997,415 in restitution. Song pleaded guilty in June 2025 to 21 counts, including conspiracy to commit wire and mail fraud, trafficking in counterfeit goods, and conspiracy to launder money.
According to court documents, from December 2015 to March 2024, Wenhui Huang, Yang Song, and their accomplices in China smuggled counterfeit Apple iPhones, iPads, and other electronic devices into the U.S. The counterfeit Apple products, which appeared genuine and bore the identification numbers of authentic devices sold in North America, were then taken to Huang, Song, and other accomplices in the United States.
The defendants applied the data from authentic devices to the counterfeit products, falsely claiming them as legitimate. They returned the fake items to Apple retail stores citing issues like devices not powering on, physical damage, or other defects, to deceive Apple into providing genuine replacements.
Prosecutors stated that the defendants not only defrauded Apple but also infringed on the rights of legitimate owners by using their device identification numbers and serial numbers without authorization. As part of the scheme, the defendants visited numerous Apple stores in Southern California, including those in Beverly Hills, Sherman Oaks, Pasadena, Irvine, Manhattan Beach, Rancho Cucamonga, as well as shopping centers like The Grove in Los Angeles, South Coast Plaza in Costa Mesa, Fashion Island in Newport Beach, and The Americana at Brand in Glendale.
In many instances, the defendants visited up to 10 Apple stores to seek returns, exchanges, or repairs using counterfeit devices. Apple sometimes replaced the items on the spot or sent them to repair centers, later delivering the replacements or repaired items to the stores or to dozens of UPS Store mailboxes rented by the defendants in Southern California, which were also used to receive counterfeit devices shipped from China.
Once they obtained legitimate products, the defendants shipped them to co-conspirators in the U.S. and overseas, primarily in China, for resale at significant profits. In addition to the two main defendants, four others were convicted in this case. Yushan Li, 32, and Shuyi Xing, 36, both residents of Corona in Riverside County, were sentenced on August 26 and 27 respectively. Li received 18 months of home confinement, while Xing was sentenced to 38 months (3 years, 3 months) in federal prison and ordered to pay $16,239,254 and $17,343,549 in restitution respectively.
Prosecutors stated that Li and Xing collectively engaged in fraudulent returns or attempted returns of at least 1,584 counterfeit devices, causing Apple Inc. actual losses of at least $1,116,544. The other two defendants, Zhengxuan Hu, 28, an illegal immigrant from Alhambra, and Junwei Jiang, 39, from East Los Angeles, had previously been sentenced for their involvement in the fraud scheme. Hu was sentenced to 24 months (2 years) in prison, and Jiang was sentenced to 36 months (3 years) in prison, both were also ordered to pay $16,239,254 in restitution.