United States Attorney David Metcalf announced the arrest and indictment of three individuals from Queens, New York. Fanchao Zeng, 33, Zhongzhou Lin, 26, and Yanping Li, 32, face charges including conspiracy to commit bank fraud, bank fraud itself, aggravated identity theft, and aiding and abetting. The charges arise from an alleged scheme to impersonate and defraud multiple bank customers.
The indictment claims that the defendants used stolen bank account information and fraudulent driver's licenses to access home equity lines of credit (HELOC) belonging to bank customers. They allegedly transferred funds from these HELOCs into accounts they controlled before withdrawing the money.
According to the indictment, Zeng and Lin identified customers with HELOCs. Alongside Li, they reportedly submitted false change of address requests for these customers through the Pennsylvania Department of Transportation's website. They then requested replacement driver's licenses for these account holders which were sent to addresses accessible by the conspirators.
Once in possession of these licenses, Zeng, Lin, Li, and others allegedly prepared to steal funds from the HELOCs. This involved transferring money online or creating fake business accounts in the names of legitimate account holders. They also initiated transfers via phone or in-person at banks.
The indictment further alleges that the defendants traveled to branches of targeted banks where "runners" withdrew funds using fraudulently obtained licenses. These runners included Li on several occasions who made large cash withdrawals or purchased official checks.
The proceeds were often cashed at casinos where they gambled with the money as a means to conceal their activities.
If convicted, Zeng could face up to 131 years in prison along with fines; Lin faces a potential sentence of up to 159 years; and Li could be sentenced to a maximum of 101 years. Each would also face five years of supervised release upon conviction.
The FBI conducted the investigation with Assistant United States Attorney Eric D. Gill prosecuting the case.
It is important to note that these charges are accusations only. All defendants are presumed innocent until proven guilty in court.