Eight Indicted in Transnational Fraud Scheme

PROVIDENCE – A federal indictment returned in U.S. District Court in Providence, RI, charges eight individuals for their roles in orchestrating and executing an elaborate transnational fraud and money laundering scheme targeting elderly citizens in the United States and Canada, announced Acting United States Attorney Sara Miron Bloom.

A defendant was taken into custody this morning in New York. He is expected to appear later today in U.S. District Court for the Eastern District of New York.

Charging documents allege the following:

• To date, law enforcement has identified approximately 300 individuals in at least 37 states, including several in Rhode Island, who have been defrauded.
• At this time, victims are estimated to have suffered known losses exceeding $5 million. However, investigators have identified a bank account through which approximately $16 million in additional suspected fraud funds appear to have been laundered.
• To carry out the scheme, members of the conspiracy sent pop-up messages to seniors’ computers, often styled to appear as if they were originating from a well-known technology company.  The messages contained various false claims, including that the victims’ financial accounts had been compromised, that their computers had been hacked, or that the victims had been identified as the target of a criminal investigation.
• The pop-up message contained information that directed victims to call a “live agent,” who informed the victims that their financial assets were at risk or could be garnished, but that they, the agent, could assist in protecting their assets. During a series of calls, victims were connected with other persons who falsely claimed to be “representatives” of the victim’s financial institutions and/or government agencies, including the Federal Trade Commission and Federal Reserve Bank.  Those “representatives” were, in fact, members of the conspiracy.
• During these calls, some victims were instructed that, in order to protect their assets, they should initiate a transfer of their funds from their accounts via wire transfers and cryptocurrency transfers to accounts controlled by agencies the scammers purportedly represented. Other victims were told to withdraw their funds in cash and purchase gold bars and turn them over to a purported government courier who would come to their home for transfer to a secure government location.  Still others were told to simply turn the cash over to a courier for safe keeping by the government.

The indictment charges

• Nanjun Song 27, of Brooklyn, NY, a Chinese national who has allegedly overstayed a B2 visa, with conspiracy to commit wire fraud and conspiracy to commit money laundering. The defendant is detained in federal custody in Rhode Island.
• Jirui Liu, 23, of Scarborough, Ontario, Canada, a citizen of China and Canada, whose U.S. visa has expired, with conspiracy to commit wire fraud and conspiracy to commit money laundering. The defendant is detained in federal custody in Rhode Island.
• Xiang Li, 37, of Flushing, NY, a Chinese national and lawful permanent U.S. resident, with conspiracy to commit wire fraud and conspiracy to commit money laundering. The defendant was detained in New York and is being transferred to Rhode Island.
• Xuehai Sun, 37, of Flushing NY, a Chinese national and lawful permanent U.S. resident, with conspiracy to commit wire fraud. The defendant was arrested today in New York and is expected to appear tomorrow in U.S. District Court for the Eastern District of New York.
• Fangzheng Wang, 24, of Westborough, MA, a Chinese national, with conspiracy to commit wire fraud. The defendant is detained in federal custody in Rhode Island.
• Cynthia Jia Sun, 25, of Houston, TX, a naturalized United States citizen born in China, with conspiracy to commit wire fraud. The defendant is in federal custody in Houston and is awaiting transfer to Rhode Island.
• Zhenyang Xin, 25, of Hamilton, Ontario, Canada, a Chinese national, with conspiracy to commit wire fraud. An arrest warrant has been issued for the defendant.
• Wing Kit Ho, 22, of Markham, Ontario, Canada, a Canadian citizen born in Hong Kong, with conspiracy to commit wire fraud. An arrest warrant has been issued for the defendant.

A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.

The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.

The matter was investigated by Homeland Security Investigations (HSI) Providence and the Internal Revenue Service – Criminal Investigation, as part of the Rhode Island Homeland Security Task Force (HSTF), a multi-agency task force focused on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

This HSTF investigation is led by HSI Providence, with assistance from the Narragansett Police Department, East Providence Police Department, New York Police Department, Texas Department of Public Safety, and agents from HSI New England, HSI New York, HSI Houston, and HSI Los Angeles. 

Acting United States Attorney Bloom thanks the United States Attorney’s Offices in the Eastern District of New York and Southern District of Texas for their assistance following the apprehension of defendants arrested in their districts.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

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