Yangwei Li and Yawen Huang, both 38 and residents of Philadelphia, have been sentenced to 18 months in prison for their involvement in a scheme to import and sell counterfeit cell phones and accessories. The sentencing was handed down by United States District Judge Chad F. Kenney. In addition to the prison term, each defendant received three years of supervised release and was ordered to pay $60,000 in restitution.
The pair were indicted in September 2023 and pleaded guilty two months later to two counts of mail fraud.
According to court documents, U.S. Customs and Border Protection began intercepting shipments addressed to Li under several aliases at three Philadelphia addresses linked to the couple starting in July 2018. These shipments contained devices bearing counterfeit trademarks from major brands such as Samsung, Apple, AKG, as well as fake Underwriters Laboratories symbols. Experts from the trademark owners or Customs confirmed the items were counterfeit.
Between July 2018 and July 2020, authorities seized 24 shipments with an estimated manufacturer’s suggested retail price totaling nearly $350,000. After each seizure, Customs sent notices to Li at various addresses alerting him that the goods had been confiscated due to being counterfeit and requesting any contrary evidence; neither Li nor Huang responded. Samsung also sent six cease-and-desist letters under various aliases without receiving any response.
On April 2, 2021, law enforcement searched the couple’s residence on Chandler Street in Philadelphia. Agents found numerous counterfeit products including charging kits for Apple devices, iPhones and accessories, Samsung chargers and headphones, AKG headphones, LG chargers, UL charging cables, packaging materials for Samsung and iPhone products, laptops, thumb drives, and cell phones linking them to six eBay sites selling these items. The domestic value of items seized was approximately $224,197.
The investigation was conducted by Homeland Security Investigations. Assistant United States Attorneys Paul Shapiro and Ruth Mandelbaum prosecuted the case.
United States Attorney David Metcalf stated: “Counterfeit electronics pose a serious threat not only to legitimate businesses but also consumers who unknowingly purchase substandard or unsafe products online or through other channels.” He added: “Our Office will continue working closely with our law enforcement partners to hold accountable those who profit from trafficking in counterfeit goods.”
Homeland Security Investigations Special Agent in Charge William S. Walker said: “HSI is committed to protecting American consumers from those who would endanger their safety by importing dangerous knock-off electronic devices.” He continued: “We are proud of our partnership with U.S. Customs & Border Protection (CBP) which has resulted in significant seizures of illicit goods at our nation’s ports.”
