Executive Summary
- Two Chinese nationals, Cao Yuan Liu and Linghan Chen, have been indicted in Fort Pierce on conspiracy and possession charges related to a widespread gift card fraud scheme.
- The scheme involved tampering with gift cards by compromising their PIN and identification numbers, returning them to store displays, and then draining funds after customers activated them.
- Law enforcement seized numerous gift cards and evidence from the suspects’ residence and vehicle, identifying approximately 42 targeted grocery stores, with the accused facing up to 15 years in federal prison if convicted.
Laws and Precedent
- The defendants have been indicted on federal charges of conspiracy and possession of 15 or more counterfeit or unauthorized access devices, indicating prosecution under federal statutes that specifically target financial fraud and crimes involving illicit access to financial instruments. The potential maximum sentence of 15 years in federal prison underscores the severe penalties associated with these federal offenses, reflecting the serious nature of large-scale financial schemes.
A federal grand jury in Fort Pierce has indicted two Chinese nationals, Cao Yuan Liu, 22, and Linghan Chen, 26, on charges of conspiracy and possession of 15 or more counterfeit or unauthorized access devices, stemming from a widespread gift card fraud scheme impacting grocery stores across South Florida. The indictment, returned on August 14, alleges the pair tampered with gift cards to steal funds once unsuspecting customers activated them.
Scheme Uncovered
According to court records, Liu and Chen allegedly removed gift cards from store aisles, compromised their PIN and identification numbers by cutting or scratching them off, and then returned the altered cards to the display. Once a customer unknowingly purchased and activated a tampered card, Liu and Chen were able to access the funds, effectively draining the card’s value.
Surveillance footage from one of the targeted stores on December 16, 2024, captured Liu and Chen departing in a black Bentley SUV with a New York license plate, leading investigators to their residence.
Law Enforcement Action
The day following the surveillance sighting, law enforcement executed a search warrant at Liu and Chen’s residence. During the search, officers seized numerous gift cards, including pieces the pair attempted to flush down a toilet in an apparent effort to destroy evidence.
A subsequent search of the black Bentley SUV on December 23, 2024, yielded additional gift cards, further linking the suspects to the fraudulent activity. Investigators have since identified approximately 42 grocery stores throughout Florida that were targeted as part of this scheme.
If convicted on the charges, Cao Yuan Liu and Linghan Chen each face a maximum sentence of 15 years in federal prison, underscoring the serious nature of the financial crimes alleged.
