Men accused of $1m fake iPhone scam.
Two Chinese men studying in the US are accused of netting nearly $1m (£765,000) by sending “broken” fake iPhones to Apple for repair and getting official handsets in return. According to a criminal complaint filed last month, the counterfeit phones were shipped from China and the replacements were sent back there and sold on. Almost half of the fake iPhones were replaced with genuine ones. Both men claim they were unaware that the faulty phones were fake. Apple calculated that it lost $895,800 (£684,758) as a result of the alleged scam. Zhou Yangyang and Jiang Quan, students at Oregon State University, are named in the complaint. Both are Chinese citizens on student visas. The alleged scam was uncovered after customs officers opened five suspicious packages en route from Hong Kong, which appeared to contain counterfeit iPhones.