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Fraud

Counterfeit Apple Products Trafficker Sentenced to 51 Months in Prison

Strategic Insights

— 1 min read

Zhiwei "Allen" Liao, a 34-year-old San Diego resident, has been sentenced to 51 months in prison for leading an international conspiracy to traffic in counterfeit Apple products. Liao, his brothers Zhimin Liao and Zhiting Liao, and several co-conspirators were involved in a sophisticated scheme that resulted in a loss of $6.1 million to Apple, Inc.

Liao and his co-conspirators imported counterfeit iPhones and iPads from China, which were then exchanged at Apple Stores across the United States and Canada. The scheme was dynamic, with Liao directing co-conspirators to send counterfeit products and criminal proceeds to different individuals and companies throughout the scheme.

The investigation led by the Federal Bureau of Investigation and the San Diego Police Department resulted in 12 felony convictions, the forfeiture of five residences with an estimated value of over $4.1 million, and the seizure of over 200 Apple products.

Key Takeaways:

  • Zhiwei "Allen" Liao, a 34-year-old San Diego resident, was sentenced to 51 months in prison for leading an international conspiracy to traffic in counterfeit Apple products.
  • Liao's scheme resulted in a loss of $6.1 million to Apple, Inc.
  • Liao and his co-conspirators imported counterfeit iPhones and iPads from China, which were then exchanged at Apple Stores across the United States and Canada.
  • The scheme was dynamic, with Liao directing co-conspirators to send counterfeit products and criminal proceeds to different individuals and companies throughout the scheme.
  • The investigation led by the Federal Bureau of Investigation and the San Diego Police Department resulted in 12 felony convictions.
  • The scheme involved over 10,000 counterfeit iPhones and iPads.
  • The forfeited residences have an estimated value of over $4.1 million.

Sources:

  • US FBI NEWS RELEASE SUMMARY -- Zhiwei "Allen" Liao sentenced to 51 months in prison for leading international conspiracy to traffic in counterfeit Apple products
  • San Diego Police Department
  • Federal Bureau of Investigation
  • San Diego County Sheriff's Department
  • U.S. Customs and Border Protection
  • Homeland Security Investigations
  • U.S. Marshals

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