Chinese National Indicted in Savannah for $1 Million Scam Targeting Senior Citizens
Xiao Kun Cheung, a 58-year-old Chinese national, has been indicted for his role in a sophisticated multi-state scam that defrauded senior citizens of more than $1 million. The charges, including Conspiracy to Commit Wire Fraud, Wire Fraud, Receiving the Proceeds of Extortion, and Possession of Controlled Substances, were announced by Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia.
Cheung, originally indicted in September, faces an updated federal indictment returned by the Southern District Grand Jury in December. The indictment alleges Cheung was part of a criminal conspiracy targeting elderly individuals across multiple cities, including Savannah and Pooler, Georgia; Naples, Florida; and Cleveland, Tennessee. The scammers first contacted victims through phone calls or deceptive pop-up messages on their computers, falsely claiming that the victims’ computers or financial accounts had been compromised.
Once the scammers had established contact, they posed as tech support or government officials and pressured the victims into withdrawing large sums of money, purchasing gift cards, or buying gold bars to be delivered for safekeeping by a government agency. These fraudulent tactics targeted senior citizens, some of whom were up to 92 years old, exploiting their vulnerability and trust.
Cheung was arrested in March 2024 while attempting to collect approximately $132,000 worth of gold bars from a victim in Pooler. The indictment outlines Cheung’s involvement in the conspiracy, revealing that he coordinated with other conspirators to collect and launder the stolen funds. Investigators also discovered that Cheung, a previously deported individual, was illegally residing in the U.S. at the time of the scam.
Cheung is currently being held in federal custody awaiting further court proceedings. If convicted, he faces up to 20 years in prison, significant financial penalties, and a period of supervised release. Notably, there is no possibility of parole in the federal system.
This case highlights the growing threat of elder fraud, particularly as it targets the elderly population who are often unaware of the common signs of scams. According to the FBI’s Internet Crime Complaint Center (IC3), victims aged 60 and older represented the largest group targeted by fraudsters in 2023, suffering more than $3.5 billion in losses. In Georgia alone, senior citizens lost over $92 million to fraud schemes, with the average dollar loss per victim nearing $34,000. Experts believe these figures underreport the true scale of elder fraud, as many victims hesitate to report crimes due to embarrassment or fear of not being believed.
The scam methods commonly employed by fraudsters targeting older adults include government imposter fraud, where scammers pretend to be from agencies like Social Security or the IRS, and tech support scams, where scammers offer help for fictitious computer or account problems. Romance scams, where fraudsters build online relationships to manipulate victims into sending money, are also prevalent.
The Department of Justice’s Elder Justice Initiative provides guidelines for seniors to protect themselves from such fraud, urging them to be cautious of unsolicited calls, verify requests for money, and refrain from sending money or purchasing gift cards for anyone met online. The initiative also emphasizes that government agencies will never request personal information or payments over the phone.
This case is being investigated by the FBI, with assistance from the Pooler Police Department. It is being prosecuted by Assistant U.S. Attorneys Darron J. Hubbard and Matthew A. Josephson of the Southern District of Georgia. The U.S. Attorney’s Office has committed to working with law enforcement to combat elder fraud and bring perpetrators to justice.
The public is encouraged to report any suspected fraud, particularly if they believe they or someone they know has been victimized, by calling the Internet Crime Complaint Center’s Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311). Educational resources on elder fraud and abuse can be found at https://www.justice.gov/elderjustice.
