A pair of enterprising siblings attempted a major scam involving counterfeit Apple products, resulting in their recent sentencing to federal prison. Zhimin and Zhiting Liao, also known as Jimmy and Allen Liao, residents of San Diego, devised a scheme to exchange fake Apple devices with genuine ones, amassing approximately $6.1 million worth of authentic Apple products, including iPhones and iPads.
They subsequently exported these products to foreign buyers. The brothers received prison sentences of 41 months each, in addition to a plea deal that involves forfeiting five San Diego residences, $250,000 in earnings from the scam, and 200 iPhones tied to their illegal activities.
The spouses of the Liao brothers were also implicated and sentenced to three years of probation for their involvement. Another brother, Zhiwei Liao, will face sentencing later this month, while eight additional co-conspirators who were part of the scheme have already pleaded guilty.
Although the Liaos’ scheme is not unique, as a college student in Oregon was convicted in 2019 for a similar scam involving fake iPhones with under-warranty serial numbers, their operation was on a much larger scale. Prosecutors revealed that Zhimin Liao personally visited 105 Apple Stores in 22 states, attempting to exchange approximately 720 counterfeit iPhones and iPads, while Zhiting Liao made around 718 device swap attempts in at least 200 Apple Stores spanning 18 U.S. states and Canada.
