Gift card scam suspects arrested after Colleyville police, Secret Service investigate
Police in Colleyville and the U.S. Secret Service arrested two people Monday on charges of engaging in organized crime, theft from the elderly, money laundering and exploitation of the elderly, according to a news release from Colleyville police.
Ke Xu, 56, and Robert J. Lang, 67, were arrested and charged after Colleyville police, the Secret Service and the Tarrant County District Attorney’s Office began investigating reports of scamming that began in March 2021, according to the release.
Colleyville police said they received a report from a local resident who was scammed into purchasing thousands in gift cards after being told he owed money for a Norton Antivirus scan, according to the release. The law enforcement agencies partnered with Walmart Global Investigations and initiated an investigation that developed into several gift card scams with victims nationwide.
The funds raised in the scams were eventually transferred to China, according to the release. The investigation showed Xu and Lang could redeem scammed gift cards within just four minutes after the victim purchased them, preventing the cards from being canceled. The cards were often redeemed in a different state than they were purchased.
The investigation ultimately identified an “Asian Money Laundering Ring,” according to the release, with multiple suspects and more than $3 million taken from victims. In September 2021, the investigation led to the arrest of Lin Qiu, 28, according to the release. Police said they have confiscated more than $681,000 in gift cards thus far.
Xu and Lang are being held at the Tarrant County Jail, each with a $2 million bond, according to the release. Qui is being held in Tarrant County Jail on a $250,000 bond.
The Federal Trade Commission warns that “gift cards are for gifts, not for payments,” and that if someone demands payment in gift cards, saying they are a legitimate company or government agency, hang up on them or ignore the message, according to the release. The gift cards create a payment to the scammers that can be difficult to trace.
Michael C. Miller, chief of Colleyville police, said the arrests are a “small victory in a complex investigation.”
“The work this team has done over the last year to track down these suspects is not only incredible, but is a true testament to their service to our community and to the partnerships we continue to cultivate,” Miller said in the release.
More information on gift card scams can be found at consumer.ftc.gov/articles/gift-card-scams.
This story was originally published February 1, 2022 at 8:48 PM.