A 20-year-old Chinese national named Zhixiang Chen has recently been sentenced to 1.5 to 3 years in prison. Chen pleaded guilty to charges of corrupt organizations and organized retail crime for his participation in a gift card scam. This scam specifically targeted Wal-Mart stores in the Pittsburgh area and nearby counties.
Attorney General Michelle Henry has announced the sentencing, which includes a $25,000 fine, the forfeiture of $16,143 in stolen funds, equipment utilized in the scheme, and a lifetime ban from Wal-Mart stores. Additionally, Chen, who is currently residing in the United States illegally, will face deportation proceedings.
Attorney General Henry emphasized the extent of the defendant’s crimes, stating that he not only stole significant amounts of money from retail stores but also targeted unsuspecting consumers who purchased the gift cards he had tampered with and then returned to store shelves. The conviction and subsequent prison sentence highlight the determination of law enforcement to combat organized retail theft and protect both businesses and consumers from such detrimental acts.
Chen was at the center of a fraudulent scheme that targeted Apple gift cards. The modus operandi involved stealing the cards from various Wal-Mart stores and then modifying them to redirect the funds to Chen himself. Cunningly, he would then place the altered cards back on the store shelves. Unaware customers would purchase these tampered cards and load money onto them, only to find their balances rapidly depleted. Authorities believe that Chen, potentially with the assistance of accomplices, managed to profit from this operation to the tune of hundreds of thousands of dollars.
In May 2024, Chen’s illicit activities were exposed when he was caught red-handed at a Wal-Mart store. Security personnel apprehended him as he tried to leave with 126 stolen gift cards concealed in his jacket. Subsequent investigations revealed an alarming find in his vehicle: nearly 4,000 Apple gift cards, potentially worth around $1 million. The discovery was made alongside a significant amount of cash and equipment utilized in his elaborate scheme.
The Frazer Township Police Department, Homeland Security Investigations-Pittsburgh, and the Office of Attorney General collaborated on the investigation. Chen was incriminated by surveillance footage from various stores.
Deputy Attorney General Rachel Wheeler and Senior Deputy Attorney General Heather Serrano handled the prosecution of this case.