A Chinese national who was living in the U.S. on a student visa pleaded guilty on Friday to charges of trafficking in counterfeit goods and conspiracy over a plot to trade Chinese - made Apple knockoffs to U.S. customers .
According to a Department of Justicepress release , 43 - yr - old Jianhua “ Jeff ” Li ’s caller Dream Digitals conspired with at least three others to smuggle over 40,000 Chinese - made “ electronic devices and accessories , including iPads and iPhones , along with labels and promotional material bearing imitative Apple stylemark . ” In the procedure , Li net some $ 1.1 million in sales gross from customers who believe they were buying actual Apple products . He also smuggle in parts separately from the imitative labels in monastic order to assemble the electronics stateside , part of an effort to keep off spotting by customs officials .
“ yield from the sales of the gadget were funnel back to the co - machinator ’ accounts in Florida and New Jersey via integrated cash sediment and a destiny of the proceeds was then transfer to conspirator in Italy , further mask the source of the funds , ” the DOJ wrote .

concord tocourt documents , prosecutor say that if the products were literal , they would have been worth over $ 15 million .
China has a robust counterfeiting industriousness ; in 2015 , officials there wear a factory for producing 41,000 fake iPhones deserving up to $ 19.4 million in one year alone , per Fortune . The counterfeiting ring buy second - script component in Shenzen and “ charter hundreds of proletarian to reassemble them on six yield telephone circuit . ” Years earlier in 2011 , Formosan authorities were report to have unveil at least22 fake Apple storesin the city of Kunming . According to Fortune , the International Chamber of Commerce estimated the global imitative trade was worth up to $ 1.7 trillion in 2012 , and China account for almost70 percent of seizuresof fake product globally over a period from 2008 to 2010 .
Apple hasseparately filed lawsuitsagainst Amazon retail merchant for selling fake production , like Mobile Star LLC , which it alleged sold large number of imitative Lightning cables and burster .

Li ’s sentencing is set for May 30th , while Centennial State - conspirators Rosario LaMarca , Andreina Becerra , and Roberto Volpe have also pleaded guilty , accord to the DOJ . LaMarca received a prison term of 37 month in slammer .
[ DOJ / The Verge ]
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