8 charged in Rhode Island in alleged fraud and money laundering scheme targeting elderly

PROVIDENCE, R.I. (WLNE) — Acting United States Attorney Sara Bloom said a federal indictment was brought forth in Rhode Island court charging eight people for their roles in an alleged transnational fraud and money laundering scheme targeting elderly citizens in the United States and Canada.

According to Bloom, 300 people across 37 states were defrauded by the scheme, with a total of $5 million in reported losses. However, investigators had discovered a bank account holding about $16 million in suspected fraud funds.

As part of the scheme, conspiracy members would allegedly send pop-up messages to seniors’ computers which appeared to be sent from a well-known technology company, holding false financial claims.

The message contained information to contact a “live agent,” who would allegedly tell the seniors their finances were at risk and they were there to help, then connecting them to false representatives claiming to be part of financial institutions or government agencies.

According to Bloom, some victims were told to transfer their funds to accounts controlled by agencies that the scammers controlled, to purchase gold bars and give them to a “purported government courier” who would transfer it to a “secure government location,” or to give cash to a courtier to keep safe by the government.

The indictment charged the following individuals:

• Nanjun Song 27, of Brooklyn, NY, a Chinese national who has allegedly overstayed a B2 visa, was charged with conspiracy to commit wire fraud and conspiracy to commit money laundering. The defendant is detained in federal custody in Rhode Island.
• Jirui Liu, 23, of Scarborough, Ontario, Canada, a citizen of China and Canada, was charged with conspiracy to commit wire fraud and conspiracy to commit money laundering. The defendant is detained in federal custody in Rhode Island.
• Xiang Li, 37, of Flushing, NY, a Chinese national and lawful permanent U.S. resident, was charged with conspiracy to commit wire fraud and conspiracy to commit money laundering. The defendant was detained in New York and is being transferred to Rhode Island.
• Xuehai Sun, 37, of Flushing NY, a Chinese national and lawful permanent U.S. resident, was charged with conspiracy to commit wire fraud. He was arrested in New York on Wednesday and is expected to appear in U.S. District Court for the Eastern District of New York on Wednesday .
• Fangzheng Wang, 24, of Westborough, MA, a Chinese national, was charged with conspiracy to commit wire fraud. The defendant is detained in federal custody in Rhode Island.
• Cynthia Jia Sun, 25, of Houston, TX, a naturalized United States citizen born in China, was charged with conspiracy to commit wire fraud. The defendant is in federal custody in Houston and is awaiting transfer to Rhode Island.
• Zhenyang Xin, 25, of Hamilton, Ontario, Canada, a Chinese national, was charged with conspiracy to commit wire fraud. An arrest warrant has been issued for the defendant.
• Wing Kit Ho, 22, of Markham, Ontario, Canada, a Canadian citizen born in Hong Kong, with conspiracy to commit wire fraud. An arrest warrant has been issued for the defendant.