7 defendants charged in alleged $20M money laundering scheme, Nassau DA says
A Nassau County investigation into an alleged $20 million money laundering scheme netted seven men believed to be part of an organized operation that shook down victims in 45 states for gift cards from Lowe’s and Home Depot.
The alleged scam targeted more than 1,800 victims in 45 states — from Long Island to Alaska — and used spyware pop-up messages and phone text messages to dupe dozens of people from Nassau County into believing that their personal and financial information had been compromised, Nassau District Attorney Anne Donnelly said at a Thursday morning news conference announcing the arrests.
Some victims, many of them elderly, were told that child pornography had been found on their home computers and that they must buy gift cards from the big box stores to help law enforcement with the investigation.
Nassau County prosecutors charge that the men, who live in Queens and Staten Island, would use the gift cards to buy copper pipping, insulated wiring and hot water heaters then sell them to plumbing and construction businesses in the outer boroughs.
During a raid on a storage facility in Queens, investigators found 12 box trucks worth of the home improvement material along with $650,000 in cash, the district attorney said. Investigators with the Nassau County police and district attorney’s office uncovered some of the merchandise still in the defendants’ cars, along with expensive jewelry and handbags, authorities said.
Donnelly said that Sky Lin, 36, of Flushing, who was charged with money laundering and conspiracy, appeared to be the most active in the group.
"On April 2, 2024, Sky Lin and two of his codefendants redeemed over 50 gift cards to purchase more than $50,000 worth of copper pipes and other items — in one day,” Donnelly said at the news conference.
The 15-month investigation started when a Home Depot investigator noticed an unusual pattern of a high volume of gift cards being purchased and used on the same day, the prosecutor said.
Between Jan. 3, 2023, and March 4, 2024, the group burned through $20 million in Lowes and Home Depot cards and, Donnelly said, the figure is expected to increase as the investigation continues. The group made more than 6,000 purchases over more than 400 days at 80 locations around New York state.
The district attorney said there are five more suspects that her office is looking to charge in the scheme.
None of the men, Lifa Wang, 49, Yu Lin, 35, Jie Lin, 32, Lixi Wang and Jia Bin Chen, 39, all of Queens and, Hai Tao Liu of Staten Island, were charged in the alleged computer scam. All were charged with money laundering and conspiracy.
Attorneys for the men did not immediately respond to calls for comment.
"I just want to take this opportunity to again remind our residents, no government or law enforcement official will ever ask you to buy a gift card to pay a debt or fix your computer or assist in an investigation,” Donnelly said at the news conference. "If someone calls you and identifies themselves as a government employee, a bank representative or a representative of an internet or software company and asks you for money, I'm telling you, hang up the phone. If you believe you're being scammed. Call the police.”
A Nassau County investigation into an alleged $20 million money laundering scheme netted seven men believed to be part of an organized operation that shook down victims in 45 states for gift cards from Lowe’s and Home Depot.
The alleged scam targeted more than 1,800 victims in 45 states — from Long Island to Alaska — and used spyware pop-up messages and phone text messages to dupe dozens of people from Nassau County into believing that their personal and financial information had been compromised, Nassau District Attorney Anne Donnelly said at a Thursday morning news conference announcing the arrests.
Some victims, many of them elderly, were told that child pornography had been found on their home computers and that they must buy gift cards from the big box stores to help law enforcement with the investigation.
Nassau County prosecutors charge that the men, who live in Queens and Staten Island, would use the gift cards to buy copper pipping, insulated wiring and hot water heaters then sell them to plumbing and construction businesses in the outer boroughs.
During a raid on a storage facility in Queens, investigators found 12 box trucks worth of the home improvement material along with $650,000 in cash, the district attorney said. Investigators with the Nassau County police and district attorney’s office uncovered some of the merchandise still in the defendants’ cars, along with expensive jewelry and handbags, authorities said.
Donnelly said that Sky Lin, 36, of Flushing, who was charged with money laundering and conspiracy, appeared to be the most active in the group.
"On April 2, 2024, Sky Lin and two of his codefendants redeemed over 50 gift cards to purchase more than $50,000 worth of copper pipes and other items — in one day,” Donnelly said at the news conference.
The 15-month investigation started when a Home Depot investigator noticed an unusual pattern of a high volume of gift cards being purchased and used on the same day, the prosecutor said.
Between Jan. 3, 2023, and March 4, 2024, the group burned through $20 million in Lowes and Home Depot cards and, Donnelly said, the figure is expected to increase as the investigation continues. The group made more than 6,000 purchases over more than 400 days at 80 locations around New York state.
The district attorney said there are five more suspects that her office is looking to charge in the scheme.
None of the men, Lifa Wang, 49, Yu Lin, 35, Jie Lin, 32, Lixi Wang and Jia Bin Chen, 39, all of Queens and, Hai Tao Liu of Staten Island, were charged in the alleged computer scam. All were charged with money laundering and conspiracy.
Attorneys for the men did not immediately respond to calls for comment.
"I just want to take this opportunity to again remind our residents, no government or law enforcement official will ever ask you to buy a gift card to pay a debt or fix your computer or assist in an investigation,” Donnelly said at the news conference. "If someone calls you and identifies themselves as a government employee, a bank representative or a representative of an internet or software company and asks you for money, I'm telling you, hang up the phone. If you believe you're being scammed. Call the police.”
