The organization, led by three brothers, is accused of importing over 10,000 counterfeit iPhones and iPads from China and then going to Apple stores in order to exchange them for the real thing.
Federal authorities unsealed an indictment Wednesday alleging that 14 members of an international criminal organization have been ripping off Apple to the tune of $6 million.
A seventh family member, Xiaomin Zhong, was married to the three brothers' sister and lived in China, according to the indictment."While a significant amount of money in any circumstance, this prosecution is about more than monetary losses," U.S. Attorney Robert Brewer said in a statement."The manufacture of counterfeit goods -- and their use to defraud U.S.
One co-conspirator, Charley Hsu, even allegedly sent a text message to Zhiwei on Sept. 12, 2015 saying the counterfeit phones"look so fake."The alleged ringleaders were arrested by the FBI on Wednesday morning, while other defendants are from China, Vietnam and Russia. If convicted, the brothers will have to surrender all proceeds, and even five different buildings owned by the family in San Diego.
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