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$20M Gift Card Scam Funneled Stolen Cash Through Nassau Co. Home Improvement Stores, DA Says

Seven people were charged in a $20 million money laundering scheme that used fraudulently obtained Home Depot and Lowe’s gift cards to buy and resell merchandise across New York, including on Long Island.

Cash and handcuffs

Cash and handcuffs

 Photo Credit: Canva/Industrial Photograph
Michael Mashburn
@mistermashburn Email me Read More Stories

The indictment followed a 15-month investigation that uncovered a complex computer-based scam that targeted thousands of victims across 45 states, Nassau County District Attorney Anne Donnelly announced Thursday, March 6.

Scammers used fake pop-ups and scam text messages to convince victims that their computers or personal information had been compromised, prosecutors said. Victims were then tricked into buying Home Depot and Lowe’s gift cards, believing they were paying off fraudulent charges or helping a law enforcement investigation.

In reality, the group allegedly laundered the stolen funds by buying copper pipes, electrical wire, and hot water heaters at dozens of Home Depot and Lowe’s stores and later reselling them to home improvement businesses in New York City.

The defendants conducted more than 6,000 transactions across 80 retail locations, with over $3 million of the stolen gift cards used in Nassau County alone, according to prosecutors.

On Tuesday, March 4, police executed search warrants at multiple locations in Flushing, Bayside, Fresh Meadows, and Brooklyn, recovering:

  • 12 box trucks filled with stolen merchandise
  • $100,000 in cash
  • Defendant vehicles packed with store-bought items
  • High-end jewelry and handbags

The stolen goods were allegedly resold to plumbing and home improvement businesses in Queens and Brooklyn.

The following defendants were charged with money laundering and conspiracy:

  • Sky Lin, 36, of Flushing
  • Lifa Wang, 49, of Flushing
  • Hai Tao Liu, 38, of Staten Island
  • Yu Lin, 35, of Fresh Meadows
  • Jie Lin, 32, of Flushing
  • Lixi Wang, 40, of Flushing
  • Jia Bin Chen, 39, of Fresh Meadows

If convicted, they face up to five to 15 years in prison.

Donnelly called the scheme “sophisticated and organized,” noting that the investigation remains ongoing, particularly into the computer-based scam that defrauded over 1,800 victims.

Nassau County Police urged anyone who suspects they are being targeted by fraud to report it immediately.

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