A Chinese national orchestrated a complex fraud scheme that financially devastated elderly victims in Florida and other states, highlighting the growing menace of elder fraud. Xiao Kun Cheung, 58, is facing federal accusations of conspiring to commit wire fraud, receiving the proceeds of extortion, and possessing controlled substances. If convicted, Cheung faces up to 20 years in federal prison and substantial fines.
“This indictment reveals a financially damaging plan that targeted the elderly as old as 92.” It represents only a fraction of the millions of victims of elder fraud in the United States each year,” said U.S. Attorney Steinberg. “With our law enforcement partners, we are committed to protecting vulnerable citizens from the predation of scam artists.”
Cheung, a previously deported Chinese national living illegally in the United States, is suspected of taking part in a scheme to defraud seniors in several cities, including Naples, Florida; Savannah and Pooler, Georgia; and Cleveland, Tennessee. The plan allegedly stole more than $1 million from elderly victims.
Fraudulent phone calls or pop-up computer messages approached victims, claiming they had hijacked their gadgets or financial accounts. Posing as trustworthy government officials or tech support professionals, the conspirators duped victims into withdrawing enormous quantities of money, purchasing gold bars or gift cards, and handing them over for “safekeeping.” In March, authorities caught Cheung in Pooler, Georgia, as he attempted to steal $132,000 in gold bars from one of his victims.
Florida, known for its big elderly population, is a popular target for fraudsters. The FBI’s Internet Crime Complaint Center (IC3) reported $3.5 billion in damages from elder fraud worldwide in 2023, with Georgia alone accounting for an estimated $92 million in losses for seniors. Experts believe the true amount is higher since many victims are too embarrassed or afraid to report the crime.
Common scams aimed at elders include:
- Government Impersonation Scams: Fraudsters pretend to represent agencies like Social Security or law enforcement to extort money.
- Tech Support Scams: Scammers claim to assist with alleged technical issues or hacked accounts.
- Romance Scams: Perpetrators build online relationships to gain victims’ trust and financial support.
To avoid becoming a victim, elders and caregivers should proceed with caution, independently check any cash requests, and be suspicious of calls demanding confidentiality or immediate action. The Department of Justice cautions against providing personal information over the phone or clicking on unsolicited email links.
If you or someone you know has been a victim of elder fraud, notify local law authorities or the FBI’s Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311). Justice.gov/elderjustice provides educational tools on elder fraud and prevention.