Three Chinese nationals have been sentenced in a U.S. federal court for their involvement in a Chinese-led gift card fraud conspiracy. Naxin Wu, Mengying Jiang, and Mingdong Chen have been sentenced to prison terms of 33 months, 60 months, and 24 months respectively, along with supervised releases and deportation upon release.
"This effort is part of Operation Take Back America, a nationwide initiative," remarked Acting U.S. Attorney Jay McCormack.
The defendants pleaded guilty to conspiracy to commit wire fraud, playing a role in laundering funds from online scams by purchasing stolen gift cards. These were then used to acquire Apple products, thus enabling the monetary conversion of the stolen assets.
“These individuals were part of a Chinese transnational criminal organization,” commented Michael J. Krol, Special Agent in Charge of Homeland Security Investigations New England.
The fraudulent scheme involved acquiring over $100 million in gift cards through methods such as hacking and elder fraud. The data from these cards was then exchanged for cryptocurrency and used by U.S.-based cells to purchase electronics, mainly Apple products. These items were shipped to Asia for profit.
"The sentences imposed in New Hampshire emphasize the expansive reach of the U.S. Postal Inspection Service," added Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.
The investigation was led by Homeland Security Investigations, IRS Criminal Investigations, the U.S. Postal Inspection Service, and the Concord Police Department, with support from the Merrimack County Attorney's Office.
