Five Chinese Nationals Indicted for Scamming Seniors Out of More Than $27 Million

NEWS RELEASE SUMMARY - July 31, 2024

SAN DIEGO - An indictment was unsealed today alleging that five individuals participated in a massive, complex fraud and money laundering scheme that resulted in losses of more than $27 million to over 2,000 seniors.

During a coordinated law enforcement operation this morning in Los Angeles, California and Las Vegas, Nevada, about 60 federal, state and local law enforcement officials arrested four of the defendants-Zhao Wang of Henderson, Nevada; Jiandong Chen of Pomona, California; Jun Li of West Covina, California; and Xin Wang of San Gabriel, California-and searched their homes. The fifth defendant, Youfei Gong, was arrested on April 9, 2024, at his home in San Gabriel, California and was in custody on state charges.

According to the indictment and publicly filed documents, the five defendants and their co-conspirators operated a multinational organized fraud ring targeting elderly victims throughout the United States.

The indictment said conspirators contacted victims through unsolicited pop-up ads, emails and phone calls designed to get victims to contact scam call centers in India. The conspirators used social engineering techniques to build trust with victims. In many cases, the conspirators had victims install remote desktop software that the conspirators used to gain remote access to victims' computers. After building trust with a victim based on fraudulent pretenses, the conspirators used technical support, government impersonation, bank impersonation and/or refund scams to induce victims to send money to other members of the conspiracy, including the five defendants charged in the indictment.

At the direction of conspirators, victims sent wire transfers or cash in express mail packages to locations throughout Southern California, Nevada and elsewhere. The defendants provided fake names and addresses corresponding with retail locations, including CVS Pharmacy locations, where packages were picked up. The defendants and co-conspirators picked up money-laden packages using fake IDs.

According to the indictment, the defendants specifically targeted elderly Americans. After receiving the victims' money, the defendants laundered it through cryptocurrency transactions to their India-based co-conspirators. As defendant Xin Wang stated in a text message:

The FBI uncovered the multinational conspiracy showing the coordination between the defendants in the United States and their India-based co-conspirators who were in direct contact with victims. Between just 2021 to 2023, agents identified approximately 2,000 victims who lost more than $27 million to the conspirators. The indictment said the conspiracy continued through June 2024.

"Every day swindlers entangle unsuspecting seniors into scams to steal their hard-earned savings," said U.S. Attorney Tara McGrath. "We urge everyone to use caution and consult with others before sending money to strangers they know only through phone calls, texts, or a computer."

"Southern California is sadly a target rich environment for foreign and domestic scam artists who relentlessly prey on vulnerable Americans and their bank accounts," said Akil Davis, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "Today's arrests follow hard work by many dedicated law enforcement agencies and will aid our continuing efforts to educate potential victims to avoid responding to strangers who claim to care about them, and never give or send hard-earned money in response to a solicitation."

"FBI San Diego Elder Justice Task Force, along with FBI LA, has worked tirelessly to bring justice to individuals who target, exploit, and victimize our most vulnerable citizens," said Stacey Moy Special Agent in Charge for the Federal Bureau of Investigation San Diego Field Office. "The FBI remains resolute in our commitment to disrupt and dismantle foreign-based fraud schemes that prey on our older Americans. We will continue to work side by side with our law enforcement partners to deter and defeat organized fraud rings, no matter where they are located."

This case was investigated by the San Diego Elder Justice Task Force and its member agencies, including the U.S. Attorney's Office, Federal Bureau of Investigation, San Diego County District Attorney's Office, Carlsbad Police Department, San Diego Police Department, and the California Highway Patrol.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available through the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). You can also report fraud to any local law enforcement agency or on the FBI's Internet Crime Complaint Center at www.ic3.gov.

This case is being prosecuted by Assistant U.S. Attorney Kevin Mokhtari.

DEFENDANTS Case Number 24CR1317-RSH

Zhao Wang, aka "Oscar" Age: 40 Henderson, NV

Jiandong Chen, aka "Little Tiger" Age: 40 Pomona, CA

Jun Li Age: 40 West Covina, CA

Xin Wang Age: 36 San Gabriel, CA

Youfei Gong Age: 29 San Gabriel, CA

SUMMARY OF CHARGES

Conspiracy to Commit Mail and Wire Fraud - Title 18, U.S.C., Sections 1349, 2326

Maximum Penalties: Forty years in prison; $1 million fine

Conspiracy to Launder Monetary Instruments - Title 18, U.S.C., Sections 1956(a)(1)(A)(i), 1956(a)(1)(B)(i) and 1956(h)

Maximum Penalties: Twenty years in prison; maximum fine of $500,000 or twice the amount laundered

Criminal Forfeiture - Title 18, U.S.C., Sections 981(a)(1)(C), 982(a)(1), 982(a)(2)(a), 2328 and Title 28, U.S.C., Section 2461(c)

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Federal Deposit Insurance Corporation - Office of Inspector General

Homeland Security Investigations

San Diego County District Attorney's Office
San Diego County Sheriff's Department

San Diego Police Department

San Diego Elder Justice Task Force

Chino Police Department

Coronado Police Department

Escondido Police Department

Glendora Police Department

Long Beach Police Department

Orange County Sheriff's Department

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.