Two residents of Riverside County have pleaded guilty to participating in a scheme that defrauded Apple Inc. out of more than $16 million by returning counterfeit devices for genuine ones. Yushan Lin, 31, and Shuyi Xing, 35, both from Corona, admitted to one count each of conspiracy to commit wire fraud and mail fraud. Xing also pleaded guilty to conspiracy to commit money laundering related to a separate scheme involving over $1 million from elder fraud cases.
The two are the last among five defendants charged in this case—six total—to enter guilty pleas for their roles in the operation centered in Southern California. The other four individuals awaiting sentencing include Wenhui Huang of Chino Hills, identified as the group’s leader; Yang Song of Corona; Junwei Jiang of East Los Angeles; and Zhengxuan Hu of Alhambra.
According to plea agreements, from December 2015 through March 2024, Huang and Song worked with associates in China who smuggled counterfeit Apple products into the United States. These devices closely resembled authentic Apple items and carried identification numbers matching those assigned to real products sold in North America. The fake devices were returned at various Apple stores throughout Southern California—including locations in Beverly Hills, Sherman Oaks, Pasadena, Irvine, Northridge, Manhattan Beach, Brea, Rancho Cucamonga, Cerritos—and shopping centers such as The Grove (Los Angeles), South Coast Plaza (Costa Mesa), Fashion Island (Newport Beach), and The Americana at Brand (Glendale).
Defendants claimed these counterfeit items were malfunctioning or damaged but under warranty coverage. Using stolen identification numbers tied to actual customers’ devices allowed them to obtain genuine replacements from Apple employees or repair centers. Once they received new or repaired authentic devices—often shipped to rented mailboxes across the region—the conspirators sent them on for resale primarily in China.
Lin and Xing personally returned or attempted returns for at least 1,584 counterfeit devices resulting in losses exceeding $1.1 million for Apple. Overall losses attributed to the larger conspiracy exceed $16 million with more than 27,645 fraudulent returns attempted.
United States District Judge André Birotte Jr. has set sentencing hearings for December 10. Lin faces up to 20 years imprisonment while Xing could be sentenced up to 40 years.
Homeland Security Investigations and IRS Criminal Investigation led the inquiry into this matter with assistance from the United States Postal Inspection Service and Los Angeles Police Department.
Assistant United States Attorney Andrew M. Roach is prosecuting the case.
“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.”
