warranty fraud
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A warranty fraudster tricked Apple into replacing 1,500 fake iPhones
Apparently, some counterfeit iPhones are good enough to fool Apple itself -- especially if they can't be switched on. Quan Jiang, a Chinese national living in Oregon, allegedly took advantage of that by running an elaborate warranty scam that ultimately defrauded the tech giant out of almost 1,500 iPhones. According to Bloomberg, Jiang imported the fake iPhones from Hong Kong and has now pleaded guilty to trafficking in counterfeit goods in federal court. Previous reports say he operated with a partner named Yangyang Zhou, who was accused of submitting false information on an export documentation. Zhou has pleaded not guilty.