Federal Grand Jury Indicts Four Chinese Nationals for Possessing Counterfeit Access Devices

Louisville, KY – A federal grand jury in Louisville, Kentucky, returned two indictments on March 19, 2025, charging a total of four Chinese nationals with possessing more than fifteen counterfeit and unauthorized access devices as part of gift card tampering schemes.

U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Rana Saoud of Homeland Security Investigations (HSI) Nashville, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Chief Barry S. Wilkerson of the St. Matthews Police Department made the announcement.

According to the first indictment, Zhiqiang Huang and Chaoming Lin were charged with possessing more than fifteen counterfeit and unauthorized access devices following their arrest on October 19, 2024. That day, Kroger security personnel observed Lin placing gift cards on the rack at a Kroger store in Louisville. Later, following a stop by St. Matthews police, Huang and Lin were found to be in possession of approximately 5,000 gifts cards. A subsequent analysis of those gift cards indicated 2,000 were likely altered.   

According to the second indictment, Huixing Yu and Tianlong Chen were charged with possessing more than fifteen counterfeit and unauthorized access devices following their arrest on October 19, 2024. That day, Kroger security personnel observed Chen placing gift cards on the rack at a Kroger store in Louisville. Later, following a stop by St. Matthews police, Yu and Chen were found to be in possession of approximately 650 gifts cards. A subsequent analysis of those gift cards indicated 250 were likely altered.   

Gift card tampering is a form of organized retail crime. Gift card tampering involves stealing gift cards from retail stores, tampering the gift card to steal sensitive information, and then placing the gift card back into commerce at a retailer to be sold to unsuspecting consumers. When a consumer purchases the tampered gift card and loads funds onto the gift card at the point of sale, the funds are diverted and stolen.

Individuals and organizations engaged in gift card tampering often target brands that can be redeemed for goods, or items that can be easily liquidated on digital marketplaces. Large retailers are primary targets due to the high levels of consumer traffic and quick inventory turnover.

If convicted, each defendant faces a sentence of up to 10 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.

There is no parole in the federal system.

This case is being investigated by HSI, FBI, and St. Matthews Police Department.

Assistant U.S. Attorney David Weiser is prosecuting this case.

These cases are 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).

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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