ICE investigation leads to indictment of 8 individuals with ties to China in transnational elder fraud scheme

PROVIDENCE, R.I. — A federal indictment returned in U.S. District Court in Providence 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.

The U.S. Immigration and Customs Enforcement-led investigation identified approximately 300 individuals in at least 37 states 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.

According to the charging documents, 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 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 the agent could assist in protecting their assets. During a series of calls, victims were connected with others who falsely claimed to be “representatives” of the victim’s financial institutions 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, 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, New York, a Chinese national who has allegedly overstayed a B2 visa, with conspiracy to commit wire fraud and conspiracy to commit money laundering. ICE Homeland Security Investigations Las Vegas arrested the defendant. He 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. HSI Providence arrested the defendant with assistance from the Connecticut State Police and Narragansett Police Department. He is detained in federal custody in Rhode Island.
• Xiang Li, 37, of Flushing, New York, a Chinese national and with conspiracy to commit wire fraud and conspiracy to commit money laundering. HSI Providence with HSI New York and the New York City Police Department arrested the defendant. He was detained in New York and is being transferred to Rhode Island.
• Xuehai Sun, 37, of Flushing New York, a Chinese national, with conspiracy to commit wire fraud. HSI Providence with HSI New York and the NYPD arrested the defendant and he appeared that day in U.S. District Court for the Eastern District of New York.
• Fangzheng Wang, 24, of Westborough, Massachusetts, a Chinese national, with conspiracy to commit wire fraud. HSI Providence with HSI New England arrested the defendant and he is detained in federal custody in Rhode Island.
• Cynthia Jia Sun, 25, of Houston, Texas, with conspiracy to commit wire fraud. HSI Houston with the Texas Department of Public Safety and is in federal custody in Houston arrested the defendant. She 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.

HSI Providence and the Internal Revenue Service – Criminal Investigation led the investigation with assistance from and HSI New England, HSI New York, HSI Houston, and HSI Los Angeles, the Narragansett Police Department, East Providence Police Department, Texas Department of Public Safety, New York Police Department, Connecticut State Police. The United States Attorney’s Offices in the Eastern District of New York and Southern District of Texas provided valuable assistance.

This investigation is an initiative of the Rhode Island Homeland Security Task Force, a multiagency 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.