September 8, 2025 – LOS ANGELES, CA – Two Chinese nationals living in Riverside County pleaded guilty on Wednesday to 
participating in a large-scale, trans-Pacific scheme to defraud Apple Inc. through the fraudulent “returns” of thousands of counterfeit iPhones, iPads, and other Apple goods that caused the Cupertino-based technology company at least $16.2 million in losses.
Yushan Lin, 31, and Shuyi Xing, 35, both of Corona, pleaded guilty to one count of conspiracy to commit wire fraud and mail fraud. Xing also pleaded guilty to an additional count of conspiracy to commit money laundering in connection with a separate money laundering scheme involving the laundering of more than $1 million in funds from various elder fraud schemes. Lin and Xing are the last of the five defendants charged in this case, and six defendants total, to plead guilty to federal criminal charges arising from their massive counterfeit Apple device fraud scheme in Southern California.
The four other defendants who have also pleaded guilty and await sentencing are:
- Wenhui Huang, 40, of Chino Hills, the group’s ringleader, who is an illegal alien;
- Yang Song, 38, of Corona, the group’s second-in-command;
- Junwei Jiang, 38, of East Los Angeles; and
- Zhengxuan Hu, 27, of Alhambra, who is an illegal alien.
According to Lin’s and Xing’s plea agreements, from at least December 2015 to March 2024, Huang, Song, and others coordinated with co-conspirators in China to smuggle counterfeit Apple iPhones, iPads, and other devices to them and other U.S.-based co-conspirators. The counterfeit Apple devices smuggled to Huang, Song, and others in the U.S. were designed to look like genuine Apple devices and included identification numbers matching the numbers on real Apple products that had been sold in North America, were owned by real people, and were under warranty through Apple’s manufacturer warranty and AppleCare+, Apple’s extended warranty program. The real identification numbers and serial numbers on the counterfeit devices that defendants returned were designed to essentially impersonate the real Apple devices owned by real people throughout the United States – and therefore deceived Apple into replacing the counterfeit devices with real devices under Apple’s warranty programs.
Once the counterfeit devices were smuggled into the U.S., the defendants fraudulently returned the counterfeit iPhones, iPads, and other devices to Apple as if they were genuine and had been legitimately purchased, were eligible for Apple’s warranty programs, and as if they were the lawful possessor of the Apple devices. The defendants knowingly and fraudulently represented that the counterfeit Apple devices they returned were genuine but were broken or non-operational and were covered by the company’s warranty programs. Some of the false reasons given to Apple store employees were because the devices purportedly would not power on, were physically damaged, or had other defects. But the defendants knew that the Apple devices they were returning were counterfeit and fraudulently used the identification numbers and serial numbers of real people’s Apple devices to victimize both Apple and the device owners.
As part of the scheme, the defendants visited multiple Apple stores throughout Southern California, including stores in Beverly Hills, Sherman Oaks, Pasadena, Irvine, Northridge, Manhattan Beach, Brea, Rancho Cucamonga, Cerritos and at shopping malls such as The Grove in Los Angeles, South Coast Plaza in Costa Mesa, Fashion Island in Newport Beach, and The Americana at Brand in Glendale. In many cases, they visited as many as 10 different Apple stores where they would allegedly return counterfeit devices.
Once at the Apple stores, Apple employees either replaced or repaired the counterfeit Apple device with a genuine Apple device in the same visit or, on other occasions, took the defendants’ counterfeit devices and shipped them to a repair center. Apple then shipped to the defendants a genuine replacement Apple device or a repaired device to either an Apple store, where the defendants returned to pick up the new device, or at the dozens of mailboxes at UPS Stores that the defendants rented across Southern California to receive counterfeit devices from China and receive genuine replacement devices from Apple.
After successfully returning the counterfeit Apple devices for genuine ones, the defendants shipped the genuine devices to co-conspirators both in the United States and abroad, primarily in China, where the genuine Apple devices were resold at a substantial profit.
Lin and Xing personally fraudulently returned and attempted to return at least 1,584 counterfeit devices to Apple, causing at least $1,116,544 in actual losses to the company. The larger conspiracy fraudulently returned and attempted to return more than 27,645 counterfeit devices to Apple, causing at least $16,239,254 in actual losses to the company.
United States District Judge André Birotte Jr. scheduled December 10 sentencing hearings for Lin, who faces a statutory maximum sentence of 20 years in federal prison, and Xing, who faces up to 40 years in federal prison.
Homeland Security Investigations and IRS Criminal Investigation are investigating this matter. The United States Postal Inspection Service and the Los Angeles Police Department provided substantial assistance.
Assistant United States Attorney Andrew M. Roach of the General Crimes Section is prosecuting this case.
Source: DOJ Release