Written by AARON CASTREJON CityWatch Editor LOS ANGELES - Three men accused of any elaborate gift card scam targeting older adults and other victims were found guilty Tuesday of one count each of conspiracy to commit money laundering.
Bowen Hu, a 28-year-old Hacienda Heights man, Tiaran Shi, a 29-year-old Diamond Bar man, and Blade Bai, A 35-year-old El Monte man, schemed to launder the proceeds of the scams which involved Target gift cards to supposedly resolve various financial problems, according to the U.S. Attorney’s Office. Bai was charged with a second count of conspiracy to commit money laundering, which he committed after being released after his initial arrest, according to the U.S. Attorney’s Office. Prosecutors estimate that the trio of defendants laundered $2.5 million in Target gift cards from June 2019 to November 2020. Telephone scammers overseas lied to their victims, claiming that purchasing the gift cards would fix nonexistent problems, such as arrest warrants, identity theft, tech support issues and compromised financial accounts. The victims would buy one, or sometimes more, Target gift cards typically in increments of $500 and then were instructed to read the card numbers and access codes over the phone to the scammers, according to the US Attorney’s Office. “Bai, Hu and Shi obtained more than 5,000 gift cards from a group of unknown persons in China that called itself the “Magic Lamp” and sold gift card information via the online messaging application WeChat,” according to the U.S. Attorney’s Office in a written statement. WeChat was also used to coordinate the distribution of the gift cards to “runners” who then used the gift cards in Los Angeles and Orange counties to purchase electronics, other gift cards and more, working to conceal the fraud. Within days of his initial arrest in November 2020, Bai was back in money laundering, again using Target gift cards. “Bai offered to introduce an associate to someone who bought merchandise from him, and thereafter asked the associate to help him liquidate approximately $36,000 of Target gift cards. With Bai unwilling to be paid directly for the sale, two accomplices together arranged a deal in which they sold, to the customer, Bai’s gift cards for approximately 90 cents on the dollar,” according to the U.S. Attorney’s Office in a written statement. He was arrested February 2022 and has remained in custody ever since. Hu and Shi were taken into custody immediately after their guilty verdicts. A fourth co-conspirator, 60-year-old Yan Fu of Chino Hills, was sentenced to 20 months in federal prison after pleading guilty to one count of conspiracy to commit money laundering in September 2022. He has also been ordered to pay $48,073 in restitution. Bai, Hu and Shi will face a statutory maximum sentence of 20 years in federal prison for each money laundering conspiracy count. They are scheduled to be sentenced January 26, 2024. Written by AARON CASTREJON CityWatch Editor LOS ANGELES – More than $1.3 million was bilked from Amazon by a third-party seller who will plead guilty to wire fraud charges.
During a filing Monday in U.S. District Court, Ting Hong Yeung, a 41-year-old Hacienda Heights man, was charged with wire fraud, accused of defrauding Amazon of $1.3 million. A plea agreement was also filed Monday in which Yeung will pay restitution, some of which will be paid in gold and silver bars seized from a search of his home, according to the U.S. Attorney’s Office. Operating under the Amazon third-party names of “Speedy Checkout,” Special SaleS” and “California Red Trading Inc.,” Yeung advertised expensive merchandise, such as furniture and home décor at rock bottom prices to drive up sales. He then provided bogus tracking numbers to customers, continually delaying refunds to complaining customers long enough for Amazon to disburse funds into his business bank accounts, according to the U.S. Attorney’s Office. “Yeung collected payment for items that were never shipped and relied on Amazon to issue refunds to his disgruntled customers under its “A-to-Z guarantee”,” according to the U.S. Attorney’s Office in a written statement. Occasionally, Yeung would ship customers cheap crystal ornaments to generate tracking numbers for customers while stalling customer complaints and demands for refunds. He also used Amazon’s messaging service to lie to customers that their products were being shipped, the U.S. Attorney’s Office said. Amazon disburses funds from purchases into a seller’s bank account every two weeks after the seller has provided proof of shipment, which is why Yeung continually delayed refunds. Occasionally, Yeung would also defraud Amazon by purchasing items on credit cards in the name of other people and false identities. Yeung would initiate returns after the goods were delivered to his customers, falsely claiming the items were “different from what was ordered.” He would then return lower-value items than what was ordered so he collected both the refund and proceeds of the original sale, the U.S. Attorney’s Office said. Yeung is expected to make an initial court appearance April 12. This case was investigated by the FBI. Written by AARON CASTREJON CityWatch Editor LOS ANGELES – Four men are slated to appear in court this month on a one-count indictment in which they are accused of conspiring to launder proceeds of wire fraud that were stored on Target gift cards.
Chinese nationals Bowen Hu, a 26-year-old Hacienda Heights man, and Tairan Shi, a 27-year-old Diamond Bar man, were arrested September 28, according to the U.S. Attorney’s Office. U.S. citizen and 33-year-old El Monte man Blade Bai and Chinese national Yan Fu, a 58-year-old Chino Hills man, were previously issued a summons to appear in federal court after having been arrested November 17, 2020. Bai pleaded not guilty to a charge of conspiracy to commit money laundering having been named in a criminal information filing. All four men are charged with conspiracy to commit money laundering. “The indictment alleges that Bai, Hu and Shi obtained more than 5,000 gift cards from a group that called itself the “Magic Lamp” and sold gift card information via an online messenger application,” according to the U.S. Attorney’s Office in a written statement. Investigators estimate the four men laundered more than $2.5 million in gift cards from June 2019 to November 2020. The four men often targeted, no pun intended, older adults across the U.S. and induced them to purchase the gift cards based on various fraud schemes, including posing as government officials demanding the purchase of gift cards to resolve an issue; and tech support scams, in which victims pay a substantial amount through gift cards to fix a computer issue, or be granted account access, the U.S. Attorney’s Office said. Bai, Hu and Shi oversaw the distribution of the gift cards to “runners,” whom included Fu. The cards were used primarily on Los Angeles and Orange counties to buy electronics, more gift cards and other items, the U.S. Attorney’s Office said. Bai, Hu and Shi obtained gift card numbers from the Magic Lamp, often the same day the victims purchased the cards, and Fu travelled to up to 17 Target stores in a single day to buy the merchandise. Bai resold the merchandise and used some of the cash to pay the Magic Lamp, the U.S. Attorney’s Office said. “This case offers an important reminder to consumers that gift cards are for presents to friends and loved ones – they should never be used for payments to any government or corporate entity,” said Acting United States Attorney Tracy L. Wilkison in a written statement. “Don’t be fooled by callers claiming to be with a government agency, a bank or any other institution demanding that you purchase gift cards. There is no reason to purchase a gift card to resolve a problem with an account, your Social Security number or a supposed criminal case,” Wilkison added. All four men face a statutory maximum of 20 years in federal prison if convicted as charged. This case was investigated by the FBI and Homeland Security Investigations. Countless other local agencies across the U.S. assisted with the investigation, including the Brea Police Department, Fontana Police Department and Gardena Police Department. Written by AARON CASTREJON CityWatch Editor LOS ANGELES - A man prosecutors accused of funneling hundreds of thousands in Covid-19 jobless benefits to foreign nationals pleaded guilty Thursday.
Bonifacio Jastilana Marinas, 50, pleaded guilty to a single-count criminal information charging him with mail fraud, according to the US Attorney’s Office. In his plea deal, Marinas admitted that his actions Cost the Unemployment Development Department and the United States Treasury $516,244. Marinas filed paperwork in the names of foreign nationals he falsely claimed were real estate agents hit hard by the pandemic. “According to his plea agreement, from April 2020 to August 2020, Marinas took advantage of provisions in the CARES Act to file approximately 85 unemployment insurance claims with the California Employment Development Department (EDD) that falsely asserted that the named claimants were self-employed real estate agents in Los Angeles County whose jobs had been adversely impacted by the COVID-19 pandemic,” the US Attorney’s Office said in a written statement. Marinas listed his realty business, West Covina-based Vintage Realty & Finance, Inc., as the workplace of the alleged EDD claimants and his home as the claimants’ addresses, but the funds were funneled to residents of Saipan and the Philippines, the US Attorney’s Office said. The claimants were not registered as real estate agents in Los Angeles County, had no employment history in California and were not eligible for the benefits Marinas claimed, the US District Attorney’s Office said. As a result, the debit cards used to distribute the unemployment benefits were mailed to Marinas, who then used them to withdraw the fraudulently obtained funds, the US Attorney’s Office said. Marinas is scheduled for a sentencing June 24 in U.S. District Court and faces a statutory maximum sentence of 20 years in federal prison. |
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