A Dublin-based Chinese businessman accused of money laundering connected to an international €9.7 million "zombie" iPhone fraud is to appeal his refusal of bail.
Chengwen Guo (41), of Ivy Exchange, Parnell Street, Dublin 1, was arrested at his home on September 11th, following a three-year investigation by the Garda National Bureau of Criminal Investigation into an illegal counterfeit Apple phone trade.
He was refused bail on Saturday and faced his second hearing when he appeared before Judge Alan Mitchell at Cloverhill District Court on Wednesday.
Judge Mitchell noted it was "early days" in the case, and gardaí needed further time to obtain directions from the Director of Public Prosecutions about possible additional charges.
The accused, who appeared via video link, consented to be remanded in continuing custody to appear again in two weeks.
Mr Guo consulted with this solicitor, Conor Ruane, who said his client would be preparing a High Court bail application for bail.
Judge Mitchell noted he intended to appeal Saturday's ruling on bail, and remanded him in continuing custody to appear again on October 2nd.
Mr Guo is accused of three offences under section seven of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 for possessing crime proceeds totalling €170,460 following searches at three locations in Dublin in January 2022. The offence carries a maximum 14-year sentence.
The father of four, who was believed to be running a chain of phone shops since moving to Ireland in 2012, allegedly had €143,245 at his home, €20,700 at Murray Mobile, 15 Main Street, Dundrum, Dublin 14, and €6,515 in a 2019-reg Audi Q2 car at Shanowen Road, Dublin 9.
His contested bail hearing on Saturday was told that fake Chinese Apple phones were allegedly dispatched to Ireland and swapped for genuine iPhones sent to China.
Gardaí believed he was a "central figure in the complex deception that was undertaken to defraud Apple".
Detective Garda Conor Cadogan said Mr Guo "made no reply" to the charges, and the officer objected to bail, citing flight risk and witness interference fears.
The GNBCI probe opened in December 2021 following a report from tech giant Apple about product warranty fraud.
"It was suspected that an international organised crime gang (OCG) are involved in procuring counterfeit products and sending them to members of the OCG in Ireland for processing," Detective Garda Cadogan said.
He claimed that in July 2021, customs officers intercepted a package "full with counterfeit items and Apple products" destined for the Murray Mobile phone company at 15 Main Street, Dundrum.
The court heard a different name was on the package, but it also had the same address and mobile phone number as the accused.
Gardaí believed the accused controlled eight Murray Mobile stores in Dublin and Kildare.
Ten searches under warrant were carried out on January 10th, 2022, and gardaí found the cash at the three locations named in court and on the charges.
Detective Garda Cadogan said the investigation team froze 14 bank accounts connected to Murray Mobile, the accused, and his wife. He told Judge McHugh there was a total of €168,902 in them.
The officer explained that the probe focused on genuine and unique IMEI (International Mobile Equipment Identity) numbers applied to counterfeit Apple phones.
Known as "zombie phones", the court heard, they were allegedly supplied to Mr Guo and subsequently used to defraud Apple.
This activity involved the phones being brought to a specific phone repair shop. Some 10,685 were submitted for repair from 2019 to 2021, and 9,761 have been allegedly confirmed to be counterfeit zombie phones.
It was estimated that the accused and his associates made approximately €9.7 million from executing this fraud. Mr Ruane said the accused has the presumption of innocence, the wait for further charges would increase his client's time in custody more than normal, and he was entitled to bail with terms.
