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Apple would have been fooled by more than 1,000 iPhones.
Greg Baker / AFP / Getty Images
Two Chinese engineering students studying in Oregon have allegedly scammed Apple for hundreds of thousands of dollars, according to a report.
Yangyang Zhou and Quan Jiang are accused of having imported from Hong Kong thousands of counterfeit iPhones into the United States as part of a scam that began in April 2017, as previously reported The Oregonian .
They allegedly sent the fake to Apple, complaining about not turning them on and getting new iPhones back in the company's warranty system. These authentic devices were then sent abroad and sold for hundreds of dollars. Jiang and Zhou have obtained a reduction in profits, according to court documents.
These documents indicate that 1,493 of the 3,069 warranty claims resulted in a replacement iPhone, resulting in a loss of $ 895,800 for Apple.
Both men were in the United States on a student visa, prosecutors said. Zhou, who went to Oregon State University, allegedly shipped the counterfeit goods to the United States and sent the replacement products they obtained.
Jiang, a student at Linn Benton Community College, has reportedly been dealing with Apple looking for replacements either in person or online. When the real iPhones were sent to China, a partner paid Jiang's mother, who then sent the money to his account.
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The documents were reported when customs officers seized suspicious shipments bearing the Apple logo. The Cupertino Corporation, California, sent termination letters and discontinuance to Jiang after he was identified as one of the suspected smugglers in December 2017, but those letters were ignored.
Zhou is also accused of submitting false export declarations, while Jiang is accused of smuggling counterfeit goods and telegraphic fraud.
Apple did not immediately respond to a request for comment.
Published for the first time at 3:42 pm Eastern time.
Updated at 4:15 PM Pacific Time: Add more detail.
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