Multiple Defendants Charged In Organized Retail Theft Conspiracy Involving Returns Of Counterfeit Electronic Goods

SAN FRANCISCO – A federal grand jury has charged seven defendants with conspiracy to commit mail fraud, mail fraud, conspiracy to traffic in counterfeit goods, and trafficking in counterfeit goods in connection with an organized retail theft scheme.  Three of the defendants were arrested yesterday.

According to the indictment filed on Aug. 26, 2025, and unsealed today, Weidong Liu, 33, Chen Shen, 37, and Weiqin Xu, 34, all of whom are Chinese nationals, and four other defendants, who remain subject to arrest, engaged in a year-long scheme to steal genuine brand-name consumer electronics products, including computer tablets and earphones.

Under the scheme, the defendants allegedly purchased iPad tablets and AirPods earphones from a major retailer with stores throughout the San Francisco Bay Area and elsewhere.  The indictment describes that the defendants then returned to the same retailer counterfeit versions bearing the brand name’s trademarks and serial numbers that matched the iPad tablets and AirPods earphones previously purchased from that retailer, in order to obtain the original purchase value back.  The counterfeits were returned in the purchased, genuine original packaging that also bore the brand name’s trademarks and the genuine products’ serial numbers.  In many instances, the original packaging was resealed with imitation stickers that matched the original sealing stickers to make the return appear unopened.  The defendants allegedly imported the counterfeits and the imitation sealing stickers from China.  The indictment also alleges that the defendants exported the genuine iPad tablets and AirPods earphones to China.

United States Attorney Craig Missakian and Homeland Security Investigations (HSI) Acting Special Agent in Charge Jeffrey Brannigan made the announcement.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, defendants each face a maximum statutory sentence of 20 years in prison and a $250,000 fine for each count of conspiracy to commit mail fraud in violation of 18 U.S.C. § 1349 and mail fraud in violation of 18 U.S.C. § 1341, and 10 years in prison and a $2,000,000 fine for each count of conspiracy to traffic in counterfeit goods in violation of 18 U.S.C. § 2320(a) and trafficking in counterfeit goods in violation of 18 U.S.C. § 2320(a)(1).  Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Liu, Shen, and Xu all made their initial appearance today before U.S. Magistrate Judge Sallie Kim.  All three defendants will next appear on Sept. 3, 2025, before U.S. Magistrate Judge Alex Tse for a continued arraignment and detention hearing.

This case was investigated and prosecuted by the Northern California Homeland Security Task Force (HSTF) as part of Operation Take Back America. HSTFs, which were established by President Trump in Executive Order 14159, Protecting the American People Against Invasion, are joint operations led by the Department of Justice and the Department of Homeland Security. Operation Take Back America is a nationwide federal initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

Assistant U.S. Attorney Daniel N. Kassabian is prosecuting the case with the assistance of Andy Ding and Lance Libatique.  The prosecution is the result of an investigation by HSI, the California Highway Patrol C.T.I.P. (Cargo Theft Interdiction Program) Taskforce, Federal Air Marshal Service, Customs and Border Protection, U.S. Postal Inspection Service, and FBI.