Three individuals face potential 80-year sentences for orchestrating a $10 million fraud against U.S. banks, involving unauthorized wire transactions and laundering proceeds through cryptocurrency exchanges.
United States prosecutors have apprehended Zhong Shi Gao, Naifeng Xu, and Feo Jiang for their alleged role in a sophisticated fraud operation targeting banks and financial institutions. The trio recruited Chinese and Taiwanese nationals residing temporarily in the U.S. to open bank accounts in New York City and other locations. Controlling these accounts, they manipulated fund transfers, subsequently reporting unauthorized wire transactions to prompt banks to credit their accounts.
Once credited, the trio swiftly withdrew funds or converted them into cryptocurrencies, funneling the proceeds to overseas crypto exchanges before banks could detect the deceit. The fraudulent scheme, spanning from 2018 to 2022, amassed over $10 million, impacting nearly a dozen banks and financial entities.