Federal prosecutors announced that Yushan Lin, 31, and Shuyi Xing, 35, pleaded guilty to running a sophisticated fraud that targeted Apple Stores across California. The scheme lasted nearly nine years and caused losses of at least $16.2 million.
How the Scam Worked
The group smuggled counterfeit iPhones and iPads from China between 2015 and 2024. Each fake device carried a real Apple serial number, tricking staff into believing it was genuine. When the fakes were returned as defective, Apple employees unknowingly handed over new or repaired devices.
The team then shipped these authentic replacements across the United States or back to China for resale. Investigators confirmed Lin and Xing tried to return over 1,500 fake devices, while the group collectively attempted to swap nearly 21,000 units.
Statewide Reach
The fraud stretched across Apple Stores in Los Angeles, Beverly Hills, Sherman Oaks, Pasadena, Irvine, Northridge, and Manhattan Beach. Malls such as South Coast Plaza and The Americana at Brand also became key targets. Authorities identified Wenhui Huang as the group’s leader, with Yang Song acting as second-in-command. Two defendants were also in the U.S. illegally.
Investigators Close In
The case drew support from multiple agencies, including Homeland Security Investigations, IRS Criminal Investigation, the U.S. Postal Inspection Service, and the Los Angeles Police Department. Prosecutors described the operation as an organized crime network with international links.
Sentencing Ahead
Lin faces up to 20 years in federal prison, while Xing could receive as many as 40 years. Both await sentencing on December 10.
Lessons for Retail Security
The case shows how criminals can exploit even strong return policies. Apple’s customer-first approach allowed fraudsters to exchange counterfeit products for genuine ones undetected for years. Investigators hope the guilty pleas and upcoming sentences will send a warning to anyone attempting similar crimes.
