3 Convicted In Target Gift Card Scam Across LA, Orange Counties: DOJ

LOS ANGELES — Three people were convicted by a federal jury for their roles in laundering money as part of a large-scale consumer fraud scheme involving gift card transactions at Target stores in Los Angeles and Orange counties, authorities announced Thursday.

Blade Bai, Bowen Hu and Tairan Shi were convicted of conspiracy to launder the proceeds of wire fraud, authorities said, adding Bai was also convicted of a separate money laundering conspiracy count. A fourth person, Yan Fu, previously pleaded guilty and was sentenced to 20 months in prison, according to the U.S. Department of Justice.

The scheme involved fraudsters posing as government officials and tech support workers, and instructing victims to buy Target gift cards and provide the scammers with the account numbers and access codes, authorities said. The defendants gave the numbers to “runners,” who bought electronics, more gift cards and other items at Target stores, mainly in Los Angeles and Orange counties, according to the department.

“These defendants knowingly laundered the proceeds of a fraudulent scheme that targeted vulnerable citizens, including older Americans,” Assistant Director in Charge Donald Always, of the FBI Los Angeles Field Office, said in a news release. “Anyone being asked to purchase a gift card in order to resolve a technical issue or to avoid an arrest should not spend money but instead, make a report to the FBI at IC3.gov.”

Bai, Hu and Shi are scheduled to be sentenced Jan. 26, according to the department.

Anyone who purchased a gift card at the direction of a scammer should immediately call the card issuer and ask them to freeze the numbers involved, and save the receipt and card, authorities said.

Victims can report the crime to the Federal Trade Commission at www.reportfraud.ftc.gov/#/ or 877-382-4357, to the FBI’s Internet Crime Complaint Center at www.ic3.gov, and to local police. Those 60 or older who have been a victim of fraud can call the National Elder Fraud Hotline at 1-833-372-8311 from 10 a.m. to 6 p.m. EST, Monday through Friday.