20
Thursday
June 2019
3:02 AM IST
News Headlines
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | Health   | About Deepika 
Business News
Chinese man guilty of defrauding Apple out of 1,500 iPhones
 
Salem : Over the span of two years, a Chinese national in Oregon sent devices that looked like iPhones to Apple, saying they wouldn't turn on and should be replaced under warranty. He didn't just submit a couple of the devices -- he delivered in person or shipped to Apple around 3,000 of them.


Apple responded by sending almost 1,500 replacement iPhones, each with an approximate resale value of USD600.

But the devices that Quan Jiang sent Apple were fake.

Jiang, 30, a former engineering student at a community college in Albany, Oregon, pleaded guilty in federal court Wednesday to trafficking in counterfeit goods, the US Attorney's office in Portland announced.

The presence of fake iPhones and other high-tech gadgets has become an issue in global resale markets, with some counterfeit versions operating so well it's hard for users to tell the difference between them and the genuine products. But in the Oregon case, the makers of the thousands of fake phones apparently didn't even have to bother with having working operating systems.

An Apple official quoted by Homeland Security Investigations Special Agent Thomas Duffy in a court document exposed a vulnerability that Jiang exploited.

"Submission of an iPhone that will not power on is critical to perpetuating iPhone warranty fraud, as the phone will not be able to be immediately examined or repaired by Apple technicians, triggering the Apple iPhone replacement process as part of its product warranty policy," Duffy wrote, quoting Apple brand protection representative Adrian Punderson.

The US Attorney's office in Portland said Jiang would import the counterfeit devices from Hong Kong and submit them to Apple using various assumed names. The genuine replacement phones Jiang received would be sold in China. Jiang's associate would pay Jiang's mother, who lives in China, who then deposited the money into Jiang's bank account.

Jiang received packages containing between 20 and 30 counterfeit iPhones from associates in Hong Kong between Jan 1, 2016, and Feb 1, 2018, according to court documents.

Apple realised something was amiss as early as June 30, 2017, when its legal counsel sent Jiang a "cease and desist" letter to an address in Corvallis where 150 warranty claims emanated. The lawyers said the company knew he was importing counterfeit Apple products, according to Duffy's affidavit. Jiang didn't respond, so the Apple lawyers sent a second letter.

Apple did not immediately respond to requests for comment on the case.

Apple rejected 1,576 warranty claims associated with Jiang, Duffy said. The 1,493 claims that resulted in replacement iPhones being delivered by Apple represented an USD895,000 loss to the Cupertino, California-based company, Duffy wrote.

Brad Bench, who heads the Homeland Security Investigations office in Seattle, said in a statement that trafficking in counterfeit goods hurts the economy, legitimate businesses, and impact consumers directly.

Jiang faces a maximum sentence of 10 years in prison, a USD2 million fine or twice his proceeds, whichever is greater, when he is sentenced on Aug 28. Under a plea agreement, the US Attorney's office will recommend a prison sentence of three years, at least USD200,000 in restitution to Apple.

And Jiang must forfeit his black 2015 Mercedes-Benz CLA 250 coupe.


Rupee rises 21 paise to 69.49 against USD in early trade
HCL Tech signs multi-year deal with Cricket Australia
Sensex, Nifty turn cautious ahead of US Fed policy meet
Investors continue to dump Jet Airways shares; further tank 15%
With 'Libra,' Facebook takes on the world of cryptocurrency
Facebook to unveil new cryptocurrency
Sensex drops over 150 pts; Nifty below 11,800
India ad spend likely to be Rs 697 billion in 2019: Report
UK court rejects Nirav Modi''s bail for fourth time over fears he would abscond
Bring down corporate tax to 18 pc sans exemptions: CII
Jet Airways shares plunge nearly 11 pc
Fiat Chrysler in talks with Aurora on autonomous vehicles
Facebook stops Huawei from pre-installing apps on phones
Rupee rises 31 paise to 69.39 vs USD in early trade
Bajaj Auto sales rise 3 pc in May to 4.19 lakh units
RBI policy, macro data key for markets in holiday-shortened week: Analysts
Six of top-10 firms add Rs 99,994 cr in m-cap; TCS leads
Mahindra sales 3 pc to 45,421 units in May
Toyota Kirloskar sales down 6% at 13,066 units in May
Sitharaman: India's first woman FM; looks to steer economy out of slowdown
KERALA NEWS
Kerala CPM leader's son booked for rape, cheating
 Mumbai: A Kerala CPM leader's son has been booked on charges of rape and cheating following a compla  
Two workers killed in Kerala as earth caves in
Two workers killed in Kerala as earth caves in
Joseph terms Jose K Mani''s election unconstitutional, says ''crowd'' can''t elect chairman
INTERNATIONAL NEWS
Russia, China block UN from saying NKorea violated sanctions
 United Nations: Russia and China have blocked the U.N. Security Council committee monitoring sanctio
Trump launches 2020 re-election bid with mega rally, says 'Keep America Great
Record 70.8 million people displaced at end of 2018: UN
UK PM candidates fight it out for second place with Boris Johnson
NATIONAL NEWS
Modi wishes good health, long life to Rahul Gandhi on his birthday
 New Delhi: Prime Minister Narendra Modi on Wednesday wished good health and a long life to Congress
Goa CM may induct Dy Speaker Lobo in cabinet
PM to set up a committee to look into One Nation, One Election initiative
Over 2.4k HIV deaths in Maha in 11 months: Minister
Untitled Page
Rashtra Deepika LTD
Copyright @ 2019 , Rashtra Deepika Ltd.