A federal grand jury in Louisville, Kentucky, has indicted four Chinese nationals for possessing counterfeit and unauthorized access devices linked to gift card tampering schemes. The indictments were announced by U.S. Attorney Michael A. Bennett of the Western District of Kentucky, alongside Special Agent in Charge Rana Saoud of Homeland Security Investigations 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.
The first indictment charges Zhiqiang Huang and Chaoming Lin with possession of more than fifteen counterfeit access devices after their arrest on October 19, 2024. On that day, Kroger security personnel observed Lin placing gift cards on a rack at a Kroger store in Louisville. Following a police stop by St. Matthews officers, Huang and Lin were found with approximately 5,000 gift cards, 2,000 of which were likely altered.
The second indictment involves Huixing Yu and Tianlong Chen who also face similar charges following their arrest on the same day. Kroger security witnessed Chen engaging in similar activity at another store location. Upon being stopped by police, Yu and Chen were discovered with about 650 gift cards, with an analysis suggesting that 250 had been altered.
Gift card tampering is described as organized retail crime involving the theft and alteration of gift cards to steal sensitive information before reselling them to unsuspecting consumers. This type of crime often targets brands redeemable for goods or items easily liquidated online.
If convicted, each defendant could face up to ten years in prison; sentences will be determined by a federal district court judge based on sentencing guidelines and statutory factors. It should be noted there is no parole in the federal system.
The case is under investigation by Homeland Security Investigations (HSI), the FBI, and the St. Matthews Police Department, with Assistant U.S. Attorney David Weiser prosecuting.
These cases are part of Operation Take Back America, an initiative aimed at combating illegal immigration and transnational criminal organizations while protecting communities from violent crime perpetrators.
It is important to remember that an indictment is merely an allegation; all defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.
