A federal grand jury in San Francisco has indicted seven individuals on charges related to an organized retail theft scheme involving counterfeit electronic goods. The indictment, filed on August 26, 2025, and unsealed today, alleges that Weidong Liu, 33, Chen Shen, 37, and Weiqin Xu, 34—Chinese nationals—and four other defendants engaged in a year-long operation targeting a major retailer with locations throughout the San Francisco Bay Area and beyond.
According to court documents, the defendants purchased genuine iPad tablets and AirPods earphones from the retailer. They then allegedly returned counterfeit versions of these products—bearing authentic trademarks and matching serial numbers—to receive refunds equal to the original purchase value. The counterfeits were packaged in genuine boxes resealed with imitation stickers designed to mimic unopened packaging. Prosecutors allege that both the counterfeit devices and imitation sealing stickers were imported from China. The indictment further claims that after securing refunds for the counterfeits, the group exported the authentic electronics back to China.
United States Attorney Craig Missakian and Homeland Security Investigations (HSI) Acting Special Agent in Charge Jeffrey Brannigan announced the charges.
“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 appeared before U.S. Magistrate Judge Sallie Kim today for their initial hearing; they are scheduled for continued arraignment and detention proceedings before U.S. Magistrate Judge Alex Tse on September 3.
The case is being handled by Assistant U.S. Attorney Daniel N. Kassabian with support from Andy Ding and Lance Libatique following an investigation led by HSI’s Northern California Homeland Security Task Force (HSTF). Other agencies involved include the California Highway Patrol C.T.I.P., Federal Air Marshal Service, Customs and Border Protection, U.S. Postal Inspection Service, and FBI.
The prosecution is part of Operation Take Back America—a nationwide initiative combining resources from multiple Department of Justice programs aimed at combating illegal immigration as well as criminal organizations operating across borders.
