Gold dealer’s warning sparks undercover arrest
WASHINGTON, D.C. — An alleged scheme to trick an 85-year-old man out of more than $200,000 in gold bars came to an abrupt end when a gold dealer recognized the warning signs, setting up an arrest instead of a payoff, according to the Metropolitan Police Department.
Police said the scam began on July 8 when the victim received emails and phone calls from people claiming to be federal agents.
According to investigators, the callers falsely warned the man that the money in his bank account was in danger and instructed him to protect it by purchasing gold bars and turning them over for safekeeping.
Believing the claims were legitimate, the victim attempted to buy more than $200,000 worth of gold bars.
The gold dealer suspected the transaction was part of a scam and contacted the Metropolitan Police Department’s Financial and Cyber Crimes Unit and the Federal Bureau of Investigation.
When two men arrived at the victim’s home to collect the gold bars, members of MPD’s Violent Crime Suppression Division took them into custody.
Police identified the suspects as 50-year-old Chu Lin of Fresh Meadows, New York, and 42-year-old Xiean Cheng of Cornelius, North Carolina.
Both men were charged with second-degree financial fraud.
The charges are allegations, and both defendants are presumed innocent unless and until proven guilty in a court of law.
Anyone with information about the case is asked to call MPD at (202) 727-9099 or text tips to 50411. Police are offering a reward of up to $1,000 for information leading to the arrest and indictment of those responsible for crimes committed in the District.
Key Points
- Police said two men posed as federal agents in an alleged $200,000 gold bar scam.
- A gold dealer recognized the fraud and alerted MPD and the FBI.
- The suspects were arrested when they arrived at the victim’s home to collect the gold.
