A Chinese national has admitted to participating in a gift card fraud scheme that targeted grocery stores across South Florida, according to federal prosecutors. Cao Yuan Liu, 22, pleaded guilty on September 23 in Fort Pierce federal court for his role in the operation, which affected stores in St. Lucie, Martin, Palm Beach, Broward, and Miami-Dade counties.
Court records indicate that between January 14 and December 17, 2024, Liu and an accomplice visited multiple grocery stores throughout Florida. They tampered with gift cards by carefully opening the packaging to expose or remove serial numbers and PINs before resealing them so they appeared untouched. After customers purchased and activated these compromised cards, Liu and his co-conspirator accessed the funds for personal use.
“Gift card fraud schemes like this prey on unsuspecting consumers and erode trust in our everyday retail systems,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “Liu’s conviction sends a clear message: those who tamper with gift cards and steal from innocent consumers will be held accountable. Our Office is committed to protecting South Florida communities from these sophisticated fraud operations and ensuring justice for those affected.”
Surveillance footage showed Liu and his accomplice leaving several stores in a black Bentley SUV with New York license plates. On December 17, law enforcement officers located both suspects at their shared apartment in Jensen Beach, where they executed a search warrant and found numerous tampered gift cards. Six days later, after seizing the Bentley SUV linked to the case, investigators discovered additional fraudulent gift cards inside the vehicle.
Authorities have identified approximately 42 grocery stores across Florida as targets of this scheme.
Liu pleaded guilty to one count of conspiracy to possess 15 or more counterfeit or unauthorized access devices. He could face up to five years in federal prison; sentencing will be determined by a federal district court judge following consideration of U.S. Sentencing Guidelines.
The announcement was made by U.S. Attorney Reding Quiñones along with Acting Special Agent in Charge José R. Figueroa of Homeland Security Investigations (HSI) Miami.
The investigation is being conducted by HSI Fort Pierce and the Martin County Sheriff’s Office. Managing Assistant U.S. Attorney Carmen M. Lineberger is prosecuting the case.
Further information about related court documents can be found at www.flsd.uscourts.gov or http://pacer.flsd.uscourts.gov under case number 25-cr-14043.
