3 Chinese Nationals Plead Guilty To Stealing Millions In Apple Products Via Gift Card Scam

CONCORD, NH — Three Chinese nationals who were involved in a gift card scam cell in Concord have pleaded guilty to wire fraud charges in the U.S. District Court in Concord.

Naxin Wu, 26, Mengying Jiang, 34, and Mingdong Chen, 28, pleaded guilty on Tuesday and will be sentenced on a single count of conspiracy to commit wire fraud each in April. They worked with others in China to acquire gift card numbers fraudulently and then purchased Apple products in the United States. The products were then sent to China, Hong Kong, and other Southeast Asian countries.

In a statement, U.S. Attorney Jane Young said the gift cards were obtained by hacking U.S. companies and targeting American citizens through “romance and elder fraud schemes.” The criminal elements then overseas then sent the gift card data to multiple cells of Chinese nationals operating in the United States through a Chinese-based messaging platform, she said.

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The Apple products were purchased with the cards, kept in warehouses, and shipped later. The scammers “primarily operate in states with no sales tax, such as New Hampshire,” to maximize their ill-gotten gains, Young said.

Wu, Jiang, and Chen were members of one cell in New Hampshire. Wu and Jiang purchased fraudulent gift cards at a discount from their face value and then either personally used the cards or disseminated them to others, including Chen, to use. Wu was responsible for $1.4 million, Jiang for $3 million, and Chen for $400,000 in fraudulent gift cards.

They each face 20 years in prison and fines of up to $250,000 or twice the gross gain or loss, whichever is greater. According to court records, all three have been detained since their arrests.

Along with Concord police, who led the investigations, Homeland Security Investigations, the IRS, and the U.S. Postal Service assisted. Young said the Merrimack County Attorney’s Office also provided valuable assistance with the case.

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