Zhango Liang, Counterfeit iPad Scheme, Washington 2024

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Grimy Times Exposes Counterfeit iPad Scheme

A Spokane man has been sentenced to federal prison for his role in a brazen counterfeit iPad scheme that netted him $326,000 in refunds. Zhango Liang, 24, of Fuzhou City, China, was handed down a 264-day prison sentence by United States District Judge Rebecca L. Pennell after pleading guilty to a fraud charge.

According to court documents, Liang was approached by a friend in the Summer of 2023 with a job that involved using gift cards to make purchases at Target stores. The items would then be delivered to another person. However, things took a turn in December 2023 when Liang was instructed to start returning counterfeit iPads to Target stores.

Liang would purchase authentic iPads from Target stores in the Eastern District of Washington and elsewhere, remove them from their boxes, place counterfeit iPads in the boxes, and then reseal the boxes. He would then return the counterfeit iPads and receive a refund on a Target gift card. The scheme was uncovered after Liang returned at least 140 iPads to Target stores and was refunded approximately $163,000.

Because Target lost the authentic iPad in the scheme and reimbursed the purchase amount to a gift card, the loss amount to Target was approximately $326,000. Acting U.S. Attorney Richard R. Barker stated, ‘Mr. Liang participated in a calculated scheme that exploited retail return systems for substantial personal gain, resulting in hundreds of thousands of dollars in losses.’

ICE Homeland Security Investigations Seattle Acting Special Agent in Charge Matthew Murphy added, ‘Today’s sentencing delivers a message: individuals who engage in sophisticated fraud schemes will be aggressively pursued and held accountable.’

Liang’s co-defendant, Linda You, pleaded guilty to a fraud charge and will be sentenced on June 23, 2025, in Spokane. The case was investigated by Homeland Security Investigations and prosecuted by Assistant United States Attorney Jeremy J. Kelley.

The Washington Attorney General’s Office Organized Retail Crime Task Force and the Skagit County Prosecuting Attorney’s Office also played a crucial role in the investigation, highlighting the successful partnership between federal and state law enforcement agencies to address organized retail crimes.