Three Chinese nationals have admitted their involvement in a fraud conspiracy linked to the purchase and export of Apple products to China, according to an announcement by United States Attorney Jane E. Young.
Naxin Wu, 26, Mengying Jiang, 34, and Mingdong Chen, 28, pleaded guilty in a federal court in Concord to charges of conspiracy to commit wire fraud. Sentencing for Wu is set for April 8, 2025; Jiang's is scheduled for April 22, 2025; and Chen will be sentenced on April 11, 2025. The proceedings will be overseen by Judges Landya B. McCafferty and Joseph N. Laplante.
Court documents reveal that organized criminal groups in China obtained gift cards through fraudulent activities such as hacking U.S. companies and executing romance and elder fraud schemes targeting U.S. citizens. The stolen gift card data was then transmitted to various cells of Chinese nationals operating within the United States using a Chinese-based messaging platform.
These U.S.-based cells used the fraudulent gift cards to purchase high-value electronics, mainly Apple products. These electronics were consolidated in warehouses before being shipped to destinations including China, Hong Kong, or countries in Southeast Asia. The operations primarily took place in states without sales tax like New Hampshire to increase profitability.
Wu, Jiang, and Chen were part of one such cell located in New Hampshire. Wu and Jiang acquired discounted fraudulent gift cards below their face value and either used them personally or distributed them among others like Chen. The fraudulent transactions attributed $1.4 million to Wu, $3 million to Jiang, and $400,000 to Chen.
The charge of conspiracy to commit wire fraud carries a potential sentence of up to 20 years imprisonment and a fine up to $250,000 or twice the gross gain or loss from the crime. Sentences are determined by a federal district court judge based on U.S. Sentencing Guidelines and relevant statutes.
The investigation was led by Homeland Security Investigations alongside Internal Revenue Service’s Criminal Investigations unit, the U.S. Postal Inspection Service, and the Concord Police Department with assistance from the Merrimack County Attorney’s Office. Assistant U.S. Attorney Alexander S. Chen is handling the prosecution.