The D.C. Circuit Court of Appeals affirmed the criminal convictions of Haotian Sun and Peng Fei Xue for their participation in a sophisticated fraud scheme targeting Apple Inc. The court issued its judgment on Jan. 23, 2026, in consolidated appeals stemming from the U.S. District Court for the District of Columbia.
Sun and Xue orchestrated a cross-border operation designed to defraud Apple by submitting counterfeit iPhones for repair at Apple stores and Apple Authorized Service Providers. According to court documents, the defendants would receive counterfeit iPhones shipped from Hong Kong and present them to Apple locations claiming they needed repair. The scheme's ultimate goal was to obtain authentic replacement iPhones from Apple, which the defendants would then ship to China for resale.
The fraudulent operation exploited Apple's customer service policies and warranty programs. By presenting counterfeit devices as legitimate Apple products requiring repair, the defendants attempted to trick Apple employees into providing genuine replacement devices. This type of fraud scheme has become increasingly common as counterfeit technology products have become more sophisticated and harder to detect.
Following a jury trial in the district court, both defendants were convicted on multiple federal charges. Sun was found guilty of one count of mail fraud in violation of 18 U.S.C. § 1341 and conspiracy to commit mail fraud under 18 U.S.C. § 1349. Xue faced more extensive charges, receiving convictions on six counts of mail fraud and conspiracy to commit mail fraud.
The district court imposed substantial prison sentences reflecting the scope and sophistication of the fraud scheme. Sun received 57 months of imprisonment on each count, with the sentences running concurrently. Xue was sentenced to 54 months of imprisonment on each count, also to run concurrently. These sentences demonstrate the serious consequences federal courts impose for organized fraud targeting major technology companies.
The D.C. Circuit's three-judge panel, consisting of Chief Judge Srinivasan, Circuit Judge Henderson, and Senior Circuit Judge Ginsburg, reviewed the appeals on the record from the district court proceedings and the parties' briefs. The appeals court followed the procedures outlined in Federal Rule of Appellate Procedure 34(a)(2) and D.C. Circuit Rule 34(j), which allow courts to decide cases without oral argument when the issues can be resolved based on written submissions.
The court determined that the appeals did not warrant a published opinion, as permitted under Federal Rule of Appellate Procedure 36 and D.C. Circuit Rule 36(d). This procedural decision indicates the court viewed the legal issues as straightforward applications of existing precedent rather than novel questions requiring detailed written analysis.
While the judgment order reveals that Sun challenged the sufficiency of something in his appeal, the specific nature of his legal arguments was not detailed in the available court documents. The appeals court's affirmance suggests that whatever challenges the defendants raised to their convictions or sentences were unsuccessful.
The case highlights ongoing challenges technology companies face from sophisticated fraud schemes involving counterfeit products. Apple and other major manufacturers have invested heavily in security features and authentication methods to combat counterfeit devices, but criminal organizations continue to develop new ways to exploit customer service and warranty systems.
Fraud schemes targeting Apple have become particularly prevalent due to the high resale value of genuine Apple products, especially in international markets. The cross-border nature of this particular scheme, involving counterfeit devices from Hong Kong and authentic replacements destined for China, reflects the global scope of technology fraud operations.
The successful prosecution and affirmance on appeal send a clear message to would-be fraudsters that federal authorities will pursue criminal charges for organized schemes targeting major corporations. Mail fraud charges carry significant penalties, including up to 20 years in prison for each count, making them powerful tools for prosecutors addressing complex fraud schemes.
The consolidated nature of the appeals, involving related criminal cases stemming from the same underlying fraud scheme, demonstrates how federal prosecutors often coordinate charges against multiple defendants participating in organized criminal activities. This approach allows courts to handle related cases efficiently while ensuring consistent outcomes for co-conspirators.
The timing of the appeals court decision, coming more than four years after the initial criminal charges were filed in 2021, reflects the lengthy process often required for complex federal criminal cases to work their way through the court system. The defendants' appeals process extended their cases well into 2026, but ultimately proved unsuccessful in overturning their convictions or reducing their sentences.
This case serves as a reminder that federal authorities continue to prioritize prosecution of fraud schemes targeting major corporations, particularly when they involve interstate or international elements that bring them within federal jurisdiction. The affirmance by the D.C. Circuit reinforces the strength of the government's case and the appropriateness of the sentences imposed by the district court.