Three Chinese nationals have been sentenced in federal court for their participation in a fraudulent gift card conspiracy, involving the purchase and export of Apple products to China, as announced by Acting U.S. Attorney Jay McCormack on April 22, 2025.
The individuals—Naxin Wu, 26, unlawfully residing in Nashua; Mengying Jiang, 34, residing in Nashua; and Mingdong Chen, 28, unlawfully residing in Brooklyn, New York—received their sentences after each pleaded guilty to Conspiracy to Commit Wire Fraud. Wu was sentenced to 33 months in prison, Jiang to 60 months, and Chen to 24 months. Each defendant will also serve a year of supervised release and face deportation to China afterward.
Acting U.S. Attorney McCormack stated, “The defendants played a critical role in laundering proceeds of romance and other online scams by purchasing the stolen gift cards and using them to purchase Apple products. While they may not have committed the initial fraud, the defendants’ actions helped convert stolen funds into tangible goods, enabling a large-scale financial crimes conspiracy. We remain committed to dismantling every link in the fraud supply chain.”
Special Agent in Charge of Homeland Security Investigations New England, Michael J. Krol, emphasized the international scope of the criminal activities. “These individuals were part of a Chinese transnational criminal organization that used a complex scheme to steal and launder millions of dollars through gift card theft. After a sophisticated criminal investigation with our partners, their scheme was uncovered and their crimes brought to light. Now, they’ll serve federal prison sentences and face deportation back to China,” he said.
U.S. Postal Inspection Service – Boston Division Inspector in Charge, Ketty Larco-Ward, highlighted the role of the U.S. Postal Inspection Service in this investigation. “The sentences imposed in New Hampshire emphasize the expansive reach of the U.S. Postal Inspection Service when it comes to dismantling criminal organizations. Anytime a criminal uses the U.S. Mail to further their illegal activity, postal inspectors will be there to bring them to justice. I’d like to thank our law enforcement partners involved in this case who, together with postal inspectors, brought these defendants to justice. This collaboration and dedication from law enforcement professionals plays a vital role in protecting the integrity of our communities from those who seek to exploit vulnerable Americans for personal gain,” stated Larco-Ward.
Court documents revealed that criminal elements in China obtained more than $100 million in gift cards through various fraudulent activities. These included hacking U.S. companies, tampering with gift cards, and orchestrating romance and elder fraud schemes. The stolen gift card data was then exchanged for cryptocurrency via a Chinese-based messaging platform. U.S.-based cells, including the one involving Wu, Jiang, and Chen in New Hampshire, utilized these gift cards to acquire high-value electronics, mainly Apple products. The electronics were then consolidated for shipment to countries like China, Hong Kong, and others in Southeast Asia. Particularly, operations took place in states like New Hampshire to benefit from the absence of sales tax.
Wu, Jiang, and Chen's financial responsibilities accounted for $1.4 million, $3 million, and $400,000 in fraudulent gift cards, respectively. Multiple agencies, including Homeland Security Investigations, IRS’s Criminal Investigations, U.S. Postal Inspection Service, and the Concord Police Department, participated in the investigation, with additional support from the Merrimack County Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Alexander S. Chen.
"This effort is part of Operation Take Back America," McCormack's office noted, emphasizing the initiative’s aim to combat illegal immigration, eliminate cartels, and safeguard communities from criminal networks.