PROVIDENCE — Eight people have been indicted in federal court in Providence after prosecutors alleged they were involved in an elaborate fraud and money laundering scheme that preyed on more than 300 seniors in at least 37 states.
The individuals behind the alleged operation were based in New York, Texas, Massachusetts, and Canada, according to the Rhode Island US Attorney’s Office. At least three have been detained in Rhode Island
In total, the scheme defrauded victims of at least $5 million, although investigators have “identified a bank account through which approximately $16 million in additional suspected fraud funds appear to have been laundered,” officials said.
“To carry out the scheme, 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,” prosecutors said. “The messages contained various false claims, including 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 directed victims to call a “live agent,” who would then tell them their “financial assets were at risk or could be garnished, but that they, the agent, could assist in protecting their assets,” officials alleged.
“During a series of calls, victims were connected with other persons who falsely claimed to be ‘representatives’ of the victim’s financial institutions and/or government agencies, including the Federal Trade Commission and Federal Reserve Bank,” prosecutors said. “Those ‘representatives’ were, in fact, members of the conspiracy.”
During the calls, some victims were told to initiate transfers from their accounts to agencies that the agents claimed to represent, according to prosecutors.
“Other victims were told to withdraw their funds in cash and 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,” officials alleged. “Still others were told to simply turn the cash over to a courier for safe keeping by the government.”
Here are the defendants named in the indictment, according to prosecutors:
- Nanjun Song, 27, of Brooklyn, N.Y., who is described as a “a Chinese national who has allegedly overstayed a B2 visa.” Song was charged with conspiracy to commit wire fraud and conspiracy to commit money laundering and is in custody in Rhode Island.
- Jirui Liu, 23, of Scarborough, Ontario, Canada, a citizen of China and Canada, who is charged with conspiracy to commit wire fraud and conspiracy to commit money laundering. Liu is in custody in Rhode Island.
- Xiang Li, 37, of Flushing, N.Y., who is described as a Chinese national and lawful permanent US resident. Li is charged with conspiracy to commit wire fraud and conspiracy to commit money laundering and was expected to be transferred from New York to Rhode Island as of Wednesday.
- Xuehai Sun, 37, of Flushing, N.Y., who is a “Chinese national and lawful permanent U.S. resident.” Sun is charged with conspiracy to commit wire fraud and was arrested in New York on Wednesday.
- Fangzheng Wang, 24, of Westborough, Mass. A Chinese national, Wang is charged with conspiracy to commit wire fraud and has been detained in Rhode Island.
- Cynthia Jia Sun, 25, of Houston, Texas, who is a “naturalized United States citizen born in China,” is charged with conspiracy to commit wire fraud. Sun was in federal custody in Houston, as of Wednesday.
- Zhenyang Xin, 25, of Hamilton, Ontario, Canada, who is a Chinese national charged with conspiracy to commit wire fraud. An arrest warrant was issued for Xin.
- Wing Kit Ho, 22, of Markham, Ontario, Canada, who is described as a Canadian citizen born in Hong Kong, was charged with conspiracy to commit wire fraud, and an arrest warrant has been issued.
Christopher Gavin can be reached at christopher.gavin@globe.com.
