Published 15:35 IST, November 15th 2019
US: 14 indicted after FBI busted $6 million counterfeit iphone ring
The FBI has caught and charged 14 alleged members of an international criminal gang in the US who are involved with fraud, conspiracy, money laundering.
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The FBI has caught and charged 14 alleged members of an international criminal gang in the US who are involved in fraud, conspiracy, money laundering, and identity theft charges related to their counterfeit iPhone and iPad scheme that reportedly cost Apple over USD 6.1 million. The case was unsealed on November 13 in San Diego, California and the gang was headed by three brothers who imported more than 10000 counterfeit iPhones and iPads from China, according to the federal grand jury.
They then exchanged it with the real phones at authorized Apple Stores throughout the US and Canada and then shipped the devices back to China and other foreign countries to sell it at a good price, according to the US Attorney's Office in the Southern District of California.
Original Apple devices have IMEI
The original Apple devices have International Mobile Equipment Identity (IMEI) and serial numbers that are unique to each and every device. As a part of the scheme, the counterfeit devices were provided with IMEI and serial numbers that matched those of the real devices covered by an Apple warranty, according to the reports. US Attorney Robert Brewer said that the manufacture of counterfeit products and their use to defraud US companies seeks to fundamentally undermine the marketplace and harms innocent people whose identities were stolen by this kind of activity.
Using other's IMEI is identity theft
Using other's IMEI or serial numbers is a form of identity theft according to the law as the person knowingly and without any legal permission transferred, possessed, and used a means of identification of another person. Apple has estimated that the counterfeit items exchanged at Apple stores exceed USD 6.1 million. The investigation took years to unseal and finally involved 14 people who face dozens of fraud, conspiracy, identity theft, and money laundering charges. The FBI arrested 11 people but is still looking for three others. The release noted that the bust occurred early Wednesday in San Diego, where law enforcement seized about USD 250,000 in cash and 90 iPhones that may be counterfeit.
21:31 IST, November 14th 2019