Chinese Nationals Sentenced for $16.2 Million Apple Warranty Fraud Scheme

Los Angeles, CA. — Two men were sentenced to federal prison Aug. 28 for leading a scheme that used counterfeit iPhones, iPads and other devices to obtain genuine Apple products, causing the company at least $16.2 million in losses, according to the U.S. Attorney’s Office for the Central District of California.

U.S. District Judge André Birotte Jr. sentenced Wenhui Huang, 41, of Chino Hills to 78 months in prison and ordered him to pay $16,239,254 in restitution. Yang Song, 39, of Corona received 57 months in prison and was ordered to pay $16,997,415. Prosecutors described both men as Chinese nationals and said Huang was in the United States illegally. They were the final defendants sentenced in the six-person case.

According to court documents, the scheme operated from at least December 2015 to March 2024. Accomplices in China shipped counterfeit devices to participants in the United States. The fakes carried serial and other identification numbers copied from genuine Apple products owned by customers in North America and covered by Apple warranties.

Participants brought the counterfeit devices to Apple stores, falsely claiming they were genuine products that were damaged or would not turn on. Apple sometimes provided a genuine replacement or repair during the visit. In other cases, it shipped a device to a store or to one of dozens of rented UPS Store mailboxes. The group then sent genuine devices to accomplices, primarily in China, for resale, prosecutors said. The copied identifiers also affected the owners of the genuine devices.

The returns took place at Apple stores across Southern California, including locations in Beverly Hills, Pasadena, Irvine, Rancho Cucamonga and Los Angeles. Prosecutors said participants sometimes visited as many as 10 stores.

Huang pleaded guilty in May 2025 to conspiracies involving mail and wire fraud and counterfeit goods, as well as a charge involving a financial transaction with criminal proceeds. Song pleaded guilty in June 2025 to fraud and counterfeit goods charges. He also pleaded guilty to a money laundering conspiracy tied to a separate scheme that moved fraud proceeds overseas.

Four other defendants were sentenced earlier. Prosecutors said Yushan Lin and Shuyi Xing, both of Corona, returned or attempted to return at least 1,584 counterfeit devices, causing at least $1.1 million in losses through their part of the scheme. Lin received 18 months of home detention and Xing received 38 months in prison. Zhengxuan Hu of Alhambra and Junwei Jiang of East Los Angeles received prison terms of 24 and 36 months, respectively. Prosecutors said Hu was also in the United States illegally.

Homeland Security Investigations and IRS Criminal Investigation investigated the case, with assistance from the U.S. Postal Inspection Service and Los Angeles police.