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Complete Story
12/19/2019
$43M fraud by Foxconn managers selling iPhones made from rejected parts
9to5mac.com
Apple is reportedly investigating a massive fraud by Foxconn managers who sold iPhones made from rejected parts.
The scam is said to have netted an incredible NT$1.3B (US$43M) over a three-year period…
Taiwan News reports.
Taiwanese electronics manufacturer Foxconn said on Wednesday (Dec. 18) that an investigation has been launched into an alleged fraud in which employees sold iPhones with defective components.
A Taiwanese businessman has purportedly worked with a group of management staff at Foxconn’s Zhengzhou facility to obtain and assemble flawed iPhone parts, which are then sold under the guise of iPhone products manufactured at the Chinese production base.
The defective components would have been destroyed according to normal procedures. The businessman and his crime ring have made a fortune out of the illegal dealings, allegedly raking in NT$1.3 billion (US$43 million) over the past three years
Details are sketchy, but local-language reports suggest that a management team responsible for destroying defective parts instead arranged to sell them to a crime ring that assembled them into working iPhones, subsequently sold to unsuspecting buyers.
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