PORTLAND, Ore. – The grimy details of a major counterfeit scheme have come to light as 30-year-old Quan Jiang, a Chinese national, has pleaded guilty to trafficking fake Apple iPhones from Hong Kong. This former engineering student at Linn Benton Community College in Albany, Oregon, is now facing the consequences of his illegal activities.
Jiang, who admitted knowledge of the counterfeit devices, imported over 2,000 inoperable iPhones between January 2016 and February 2018. He submitted each to Apple for warranty replacements, then shipped the genuine phones back to China for resale. Jiang’s mother, also based in China, received payment from his Hong Kong associates, which was funneled into his bank account.
Billy J. Williams, U.S. Attorney for the District of Oregon, emphasized the impact of counterfeiting on commerce and consumers, saying, “Counterfeiting undermines commerce and inevitably leads to increased prices for goods enjoyed by millions.”
Brad Bench, Special Agent in Charge of HSI Seattle, warned against the misconception that counterfeit goods are victimless. “They hurt the economy and legitimate businesses, and they impact consumers directly,” he said.
Jiang faces a severe punishment with a maximum sentence of ten years in prison, a fine of up to $2 million, or twice his proceeds, whichever is greater, and three years of supervised release. His sentencing is scheduled for August 28, 2019, before U.S. District Court Judge Anna J. Brown.
This case was jointly investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), and prosecuted by Assistant U.S. Attorney Ryan W. Bounds for the District of Oregon. Jiang has also agreed to pay $200,000 in restitution to Apple.
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Key Facts
- State: Oregon
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Cybercrime|Organized Crime
- Source: Official Source ↗
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