SAVANNAH, Ga. — A 58-year-old man has been indicted for his role connected to a multi-state plot to defraud the elderly.
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Xiao Kun Cheung, 58, is charged with conspiracy to commit wire fraud, wire fraud, receiving the proceeds of extortion, and possession of controlled substances. He was indicted in September.
According to the Southern District of Georgia U.S. Attorney’s Office, Cheung was allegedly part of a conspiracy that targeted elderly victims in several cities including Savannah and Pooler, Georgia; Naples, Fla.; and Cleveland, Tenn.
Officials said the suspects began contacting seniors through phone calls or pop-up messages on their computers, falsely claiming that the victim’s computer or financial accounts had been compromised.
The DA said The schemers, claiming to assist the seniors, then persuaded the elderly victims to withdraw large sums of money, buy gift cards, or purchase gold bars to send to a suspect for safekeeping by a government agency.
Cheung was arrested in March while trying to pick up $132,000 in gold bars from a victim in Pooler. The DA said Cheung was previously a deported Chinese national illegally living in the U.S. He’s being held in federal custody awaiting court proceedings.
“This indictment uncovers a financially devastating scheme that targeted seniors up to 92 years old. It represents just a fraction of the multitude of victims of elder fraud each year in the United States,” said U.S. Attorney Steinberg.
His charges carry a statutory penalty upon conviction of up to 20 years in prison and financial penalties, followed by a period of supervised release upon served prison time.
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According to the FBI, in 2023, victims 60 and older represented the largest single age group targeted by fraud, losing more than $3.5 billion – an almost 11% increase from 2022, with more than $92 million in losses to senior victims in Georgia alone. The average dollar loss of each elderly victim was nearly $34,000.
The Department of Justice Elder Justice Initiative advises potential victims and their caregivers to take these precautions to avoid falling victim:
- Accept computer or other technical support only from known, trusted individuals or from a person you’ve hired for that purpose;
- Before taking any action to help a grandchild, other relative or friend, check with that person or that person’s relation by phone to validate the request;
- If a caller claims to be from an established organization such as a charity or law enforcement, look up the number of the organization independently and call them to verify the request;
- Consider it a red flag if the caller insists on secrecy. Never allow anyone to discourage you from seeking information, verification, and counsel from family or friends before making any financial transaction;
- The federal government will never call you on the phone to ask for personal information or to threaten you;
- Do not send money, gift cards, or wire transfers to anyone you’ve met only online and do not click on links sent to you in unsolicited emails or text messages.
Those who believe they have been, or who may know, victims of elder fraud are asked to call 911 in an emergency or contact the Internet Crime Complaint Center’s Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).
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