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(Newser)
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Two students scammed Apple for 900,000 USD by sending fake iPhones to the company for warranty repair, according to complaints filed by the federal government. According to NBC News, the company realized that several thousand phones were counterfeit, but still sent back nearly 1,500 authentic substitutes to students. The phones sent would not work, which, according to the government, was the key to the scam, "because the phone will not be immediately examined or repaired by Apple technicians". One of the students from Oregon said that a partner in China had sent him 20 to 30 iPhones at a time, along with instructions to submit them to Apple for warranty repairs. After receiving replacements, the student sent them to China to sell them.
The partner made payments to the mother of the student in China and she deposited the money into a bank account that the student could access in the United States. Quan Jiang and Yangyang Zhou, who were on student visas at the time, say that they did not know that the phones were fake, according to the number of court files filed by the court. "Regarding Mr. Zhou, the government is completely wrong," said his lawyer. But the documents also indicate that Quan Jiang explained the operation of the scheme to an investigator, reports NPR. He used fictitious and absurd names, once mentioning "Apache Helicopter" in a claim that had resulted in a new phone. Both men face fines and jail time if convicted. (Read more stories on the iPhone.)
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