Senior Scams Exposed: Multi-State Fraudster Indicted for Swindling Over $1 Million from Elderly Victims

Savannah, GA: A Shocking Case of Senior Scams Unfolds

In a startling turn of events, a 58-year-old Chinese national named Xiao Kun Cheung has been indicted for his involvement in a multi-state scam that swindled over $1 million from elderly citizens. This shocking case raises alarm bells about the ongoing crisis of elder fraud that continues to plague vulnerable individuals across the country.

What Happened?

Originally indicted back in September, Cheung’s situation took a significant turn when a superseding federal indictment was issued by the Southern District Grand Jury in December. The charges include Conspiracy to Commit Wire Fraud, Wire Fraud, Receiving Proceeds of Extortion, and Possession of Controlled Substances. If convicted, he faces up to 20 years in prison and hefty financial penalties. It’s important to remember that in the federal system, there is no parole. Instead, individuals will be subject to a supervised release after their prison term is completed.

Targeting the Vulnerable

According to U.S. Attorney Steinberg, this scheme specifically targeted seniors, some as old as 92 years old. This not only highlights the need for vigilance in the face of such scams but also indicates just how widespread these fraudulent activities can be across the United States.

Cheung and his associates operated in multiple cities, including Savannah and Pooler, Georgia; Naples, Florida; and Cleveland, Tennessee. The modus operandi involved contacting the elderly through phone calls or intrusive pop-up messages, falsely claiming that their computer or financial accounts had been compromised. Under the guise of offering assistance, the scammers persuaded these elderly individuals to withdraw large sums of money, buy gift cards, or even purchase gold bars to hand over for “safekeeping” by so-called government agents.

Cheung’s Arrest

Cheung’s illegal activities caught up with him when he was arrested in March while attempting to pick up approximately $132,000 in gold bars from a victim in Pooler. Although he has faced legal issues in the past, such as being previously deported, Cheung was discovered to be in the United States illegally. Currently, he remains in federal custody as court proceedings are underway.

A Call for Awareness

With the alarming rise of scams targeting seniors, this case sheds light on a persistent issue that demands our attention. U.S. Attorney Steinberg emphasized the serious nature of these crimes, stating, “This indictment uncovers a financially devastating scheme that targeted seniors… it represents just a fraction of the multitude of victims of elder fraud each year.”

What Should You Do?

If you or someone you know has fallen victim to elder fraud, it’s crucial to take action. Emergency situations can be reported by calling 911, or individuals can contact the Internet Crime Complaint Center’s Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311). There are also resources available online, specifically catered to educating the public about elder fraud and abuse through the Justice Department’s elder justice initiative.

Conclusion

This case serves as a vital reminder that we must protect our loved ones, especially our senior citizens, from the clutches of predatory scam artists. It’s our responsibility to stay informed, share knowledge, and keep a watchful eye on the signs of fraud. Together, we can create a safer environment for everyone!