WASHINGTON (TNND) — An elaborate scheme that involved foreign criminals preying on innocent Americans has been busted, as part of a months-long investigation.
Three Chinese nationals were sentenced in federal court in April for their roles in a sophisticated gift card fraud conspiracy, as top officials warn similar schemes may be underway.
- Naxin Wu, 26, a Chinese national unlawfully residing in Nashua, was sentenced by Chief Judge Landya B. McCafferty to 33 months in prison and one year of supervised release.
- Mengying Jiang, 34, a Chinese national residing in Nashua, was sentenced by Chief Judge McCafferty to 60 months in prison and one year of supervised release.
- Mingdong Chen, 28, a Chinese national unlawfully residing in Brooklyn, New York, was sentenced by Judge Joseph N. Laplante to 24 months in prison and one year of supervised release.
Earlier this year, the defendants each pleaded guilty to Conspiracy to Commit Wire Fraud. All three defendants face deportation to China after completing their sentences.
Some victims were elderly or lonely, getting involved in a fraudulent relationship formed online. They were often lured in with a fake story and after a relationship was formed, it was followed by a plea to send gift cards or money to a potential “partner.”
Many others were simply unsuspecting shoppers, picking up a gift card at the store, not knowing the money they added to it would soon be used by Chinese nationals carrying out a multi-layer criminal enterprise in New Hampshire.
In an interview with The National News Desk, Will Crogan, Special Agent in Charge for Homeland Security Investigations, explained why.
New Hampshire is a retail tax-free environment, so it makes it an attractive place for both legitimate shoppers, but it also makes it attractive for criminal organizations that are looking to maximize their profits.”
Crogan said that as fast as money was added to the cards, they would spend it, storing information they stole by removing the security covering from the back of the cards to get the code, then covering it up again in ways that often went undetected.
The money was almost always on high-value electronics, mostly Apple products, which they’d store in warehouses and then ship to China or Hong Kong, then raking in huge profits.
They are very sophisticated and what we may see in one place, like New Hampshire, is part of many other locations and all of this money adds up to the hundreds of millions of dollars.
The good news is that there are precautions consumers can take.
When buying a gift card, always check the back of the card and look closely for small cuts or tears or added glue.
As far as those online romance scams, be aware, these people are highly trained to prey upon people’s instinct to help others. Best not to send money or gift cards to anyone you don’t know,
