SAVANNAH, Ga. (WSAV) – A man who allegedly schemed against senior citizens in Savannah and Pooler and other states has been formally charged.
Xiao Kun Cheung, 58, faces charges of wire fraud, conspiracy to commit wire fraud, receiving the proceeds of extortion and possession of controlled substances, the U.S. Attorney's Office for the Southern District of Georgia announced Friday.
“This indictment uncovers a financially devastating scheme that targeted seniors up to 92 years old. It represents just a fraction of the multitude of victims of elder fraud each year in the United States,” said U.S. Attorney Jill Steinberg. “With our law enforcement partners, we are committed to protecting vulnerable citizens from the predation of scam artists.”
The indictment alleges that Cheung conspired with others locally and in Naples, Florida, and Cleveland, Tennessee, by contacting seniors through phone calls or pop-up messages on their computers.
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They would allegedly falsely claim that the victim's computer or financial accounts had been compromised.
Then, claiming to be able to assist the seniors, they would persuade the victims to withdraw large sums of money, purchase gift cards or buy gold bars to deliver to the conspirator for safekeeping by a government agency, the indictment alleges.
The U.S. Attorney's Office said Cheung was arrested in March while attempting to pick up over $130,000 in gold bars from a victim in Pooler.
Officials said Cheung is a previously deported Chinese national illegally present in the United States. He currently is being held in federal custody awaiting further court proceedings.
If convicted, he could be sentenced to up to 20 years in prison with substantial financial penalties and a period of supervised release.