Three 
nationals — Naxin Wu, Mengying Jiang and Mingdong Chen — were sentenced in federal court for their roles in a sophisticated Chinese gift card fraud conspiracy.
Wu, a national unlawfully residing in Nashua, was sentenced to 33 months in prison and one year of supervised release.
Jiang, a national residing in Nashua, was sentenced to 60 months in prison and one year of supervised release.
Chen, a national unlawfully residing in Brooklyn, New York, was sentenced to 24 months in prison and one year of supervised release.
Earlier this year, the defendants each pleaded guilty to Conspiracy to Commit Wire Fraud. All three defendants face deportation to China after completing their sentences.
Wu, Jiang and Chen were part of a Chinese transnational criminal organization that used a complex scheme to steal and launder millions of dollars through gift card theft.
Organized criminal elements in China acquired well over $100 million in gift cards through multiple fraudulent means. For example, gift card data is obtained by hacking US companies, tampering with physical gift cards, and targeting US citizens through romance and elder fraud schemes. The criminal elements then send the gift card data to multiple cells of nationals operating in the US through a Chinese-based messaging platform in exchange for cryptocurrency.
Once US-based cells receive the gift card data, they then spend the gift cards to purchase high-value electronics, principally Apple products. After purchasing the Apple products, cell members consolidate the electronics in warehouses for shipment to China, Hong Kong, or countries in Southeast Asia. The cells primarily operate in states with no sales tax, such as New Hampshire, to maximize their profits.
Wu, Jiang, and Chen were members of one cell in New Hampshire. Wu and Jiang purchased fraudulent gift cards at a discount from their face value. They then either personally used the cards or disseminated them to others, including Chen, to use. Wu was responsible for $1.4 million, Jiang for $3 million, and Chen for $400,000 of fraudulent gift cards.
justice.gov/usao-nh/pr/chi
nationals — Naxin Wu, Mengying Jiang and Mingdong Chen — were sentenced in federal court for their roles in a sophisticated Chinese gift card fraud conspiracy.
Wu, a national unlawfully residing in Nashua, was sentenced to 33 months in prison and one year of supervised release.
Jiang, a national residing in Nashua, was sentenced to 60 months in prison and one year of supervised release.
Chen, a national unlawfully residing in Brooklyn, New York, was sentenced to 24 months in prison and one year of supervised release.
Earlier this year, the defendants each pleaded guilty to Conspiracy to Commit Wire Fraud. All three defendants face deportation to China after completing their sentences.
Wu, Jiang and Chen were part of a Chinese transnational criminal organization that used a complex scheme to steal and launder millions of dollars through gift card theft.
Organized criminal elements in China acquired well over $100 million in gift cards through multiple fraudulent means. For example, gift card data is obtained by hacking US companies, tampering with physical gift cards, and targeting US citizens through romance and elder fraud schemes. The criminal elements then send the gift card data to multiple cells of nationals operating in the US through a Chinese-based messaging platform in exchange for cryptocurrency.
Once US-based cells receive the gift card data, they then spend the gift cards to purchase high-value electronics, principally Apple products. After purchasing the Apple products, cell members consolidate the electronics in warehouses for shipment to China, Hong Kong, or countries in Southeast Asia. The cells primarily operate in states with no sales tax, such as New Hampshire, to maximize their profits.
Wu, Jiang, and Chen were members of one cell in New Hampshire. Wu and Jiang purchased fraudulent gift cards at a discount from their face value. They then either personally used the cards or disseminated them to others, including Chen, to use. Wu was responsible for $1.4 million, Jiang for $3 million, and Chen for $400,000 of fraudulent gift cards.
justice.gov/usao-nh/pr/chi