A federal judge sentenced two Southern California men to prison on Friday, Aug. 28, for running a $16.2 million counterfeit iPhone ring that hit the Beverly Hills Apple Store.

U.S. District Judge André Birotte Jr. sentenced Wenhui Huang, 41, of Chino Hills, to 78 months in federal prison and ordered him to pay $16,239,254 in restitution, according to the U.S. Attorney's Office for the Central District of California. Yang Song, 39, of Corona, received 57 months and was ordered to pay $16,997,415.

The sentences close out a case that produced six convictions tied to a fraud operation prosecutors say ran from December 2015 to March 2024.

How the scheme worked

Huang, Song and co-conspirators coordinated with contacts in China to smuggle counterfeit Apple iPhones, iPads and other devices into the United States, according to court filings cited in the DOJ press release. The counterfeits carried serial numbers matching real Apple products owned by real people with valid AppleCare+ warranties.

Ring members brought the fakes into Apple stores, told employees the devices were damaged or would not power on, and walked out with genuine replacements. The Beverly Hills store was among at least 10 locations hit.

Stores in Sherman Oaks, Pasadena, Irvine, Northridge, Manhattan Beach, Brea, Rancho Cucamonga and Cerritos were also targeted, along with locations at The Grove, South Coast Plaza, Fashion Island and The Americana at Brand.

Apple either swapped the counterfeit devices on the spot or shipped genuine replacements to dozens of UPS Store mailboxes the defendants rented across the region. The real devices were then sent to co-conspirators in the United States and China, where they were resold at a profit.

Guilty pleas and other sentences

Huang pleaded guilty in May 2025 to conspiracy to commit wire fraud and mail fraud, conspiracy to traffic in counterfeit goods, and conducting a financial transaction with proceeds from the fraud. Song pleaded guilty in June 2025 to 21 counts of wire fraud, mail fraud and conspiracy to traffic in counterfeit goods, plus a separate count of conspiracy to commit money laundering.

All six defendants have been sentenced.

Four co-defendants were also convicted. Shuyi Xing, 36, of Corona, was sentenced to 38 months in federal prison on Thursday, Aug. 27. Yushan Lin, 32, also of Corona, received 18 months of home detention the same day.

Prosecutors said Lin and Xing fraudulently returned or attempted to return at least 1,584 counterfeit devices, causing at least $1,116,544 in losses. Two other defendants, Zhengxuan Hu, 28, of Alhambra, and Junwei Jiang, 39, of East Los Angeles, were previously sentenced to 24 and 36 months, respectively.

Investigation

Homeland Security Investigations and IRS Criminal Investigation led the probe, with assistance from the U.S. Postal Inspection Service and the Los Angeles Police Department. Assistant U.S. Attorney Andrew M. Roach of the Major Frauds Section prosecuted the case.

Residents who suspect warranty fraud involving their Apple devices can contact Homeland Security Investigations at 1-866-347-2423.