Two California residents have admitted to their roles in a sophisticated trans-Pacific fraud scheme that defrauded Apple Inc. of approximately $16.2 million by returning thousands of counterfeit devices.
Yushan Lin, 31, and Shuyi Xing, 35, both from Corona, California, pleaded guilty to conspiracy to commit wire and mail fraud, marking the final defendants to admit guilt in this high-profile case.
The scheme, which operated from 2015 through 2024, involved a network led by ringleader Wenhui Huang, 40, of Chino Hills, along with co-conspirators Yang Song, Junwei Jiang, and Zhengxuan Hu. Working closely with partners based in China, the group smuggled counterfeit Apple devices into the U.S. These fake products were crafted to appear authentic, using real serial numbers linked to Apple devices under warranty in North America.
Once in the country, Lin, Xing, and others returned these counterfeit devices to Apple stores across Southern California—including locations in Beverly Hills, Pasadena, Irvine, and major malls such as The Grove and South Coast Plaza—claiming the devices were defective and covered by Apple’s warranty. Employees, unaware of the scam, either replaced the devices with genuine ones or sent them for repairs. Apple subsequently provided authentic replacements or repaired devices, which the defendants collected either directly from stores or at UPS mailbox locations they rented.
The genuine Apple devices were then resold to co-conspirators in both the U.S. and China for substantial profit. Lin and Xing alone admitted to personally returning or attempting to return at least 1,584 counterfeit devices, inflicting losses exceeding $1.1 million on Apple.
In addition to the Apple fraud, Xing confessed to participating in schemes to launder over $1 million stolen from elderly victims.
Federal Judge Andre Birotte Jr. has scheduled sentencing hearings for Lin and Xing on December 10, 2025. Lin faces up to 20 years in prison, while Xing faces up to 40 years.
