Chinese Man pleads guilty for defrauding Apple out of 1,500 iPhones

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“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,” Andrew Selsky reports for The Associated Press. “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 $600. But the devices that Quan Jiang sent Apple were fake.”

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“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 U.S. Attorney’s office in Portland announced,” Selsky reports.

“Apple rejected 1,576 warranty claims associated with Jiang, Duffy said. The 1,493 claims that resulted in replacement iPhones being delivered by Applerepresented an $895,000 loss to the Cupertino, California-based company, Duffy wrote,” Selsky reports. “Jiang faces a maximum sentence of 10 years in prison, a $2 million fine or twice his proceeds, whichever is greater, when he is sentenced on Aug. 28. Under a plea agreement, the U.S. Attorney’s office will recommend a prison sentence of three years, at least $200,000 in restitution to Apple.”

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