Four men are facing numerous charges related to a significant gift card scam that was discovered by the St. Matthews Police Department.
On Saturday, officers discovered thousands of fake gift cards related to an organized crime scam affecting people all throughout the country.
Chief Barry Wilkerson told WLKY that the bogus gift cards confiscated from suspects are worth at least $1 million.
Wilkerson reported that the Kroger on North Hubbards Lane in St. Matthews caught a suspect putting altered cards on the rack. Surveillance footage from October 19 shows a man spending a long time in the store’s gift card aisle. A store employee reported him to police, who determined he was working with three others.
“All the ones that we have caught so far have been Chinese nationalists,” Wilkerson informed the crowd.
On Saturday, police arrested four men: Chaoming Lin, Zhiqiang Huang, Huixing Yu, and Tianlong Chen. Police have charged Lin and Huang with 999 counts of criminal possession of a fake instrument. Each of Yu and Chen faces three charges: criminal possession of a forged instrument, fleeing or evading police, and engaging in organized crime.
Where is the money going?
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According to allegations, the individuals are being accused of engaging in a scheme where they would open gift cards at well-known retail stores in order to obtain the serial numbers. Subsequently, they would reseal the cards in their original packaging and return them to the store shelves. Once the cards were activated and loaded with money, it is claimed that they would then proceed to steal the funds.
Wilkerson expressed his concerns about the usage of the money, questioning if it is linked to terrorism. He admitted that he is unsure about the details and complexity of these cases, which is why they are handed over to federal agencies for further investigation.
The St. Matthews police department has transferred the investigation to the United States Department of Homeland Security, who have identified this case as part of an organized crime operation carried out by individuals of Chinese descent. According to reports, the four suspects targeted various stores located in New York, Pennsylvania, Ohio, and Kentucky.
According to WLKY, the Kentucky Retail Federation has expressed concerns over the increasing issue in the commonwealth over the past year.
According to spokesperson Steve McClain, Kentucky holds a significant position due to its strategic location at the intersection of three major interstates.
The federation is making arrangements to meet with Kentucky Attorney General Russell Coleman in order to advocate for more stringent legislation to combat this crime at major retailers, as mentioned by McClain. Police officials informed WLKY that the usual consequences for such offenses only result in a brief period of incarceration.
Shoppers urged to use caution
Meanwhile, authorities are urging buyers to exercise caution when purchasing gift cards from Kroger and other grocery or retail stores. They offered the following advice:
Inspect the packing. Should a gift card exhibit signs of tampering, refrain from purchasing it. Keep the receipt for the activation code and give it to the beneficiaries of the gift cards. Consider purchasing gift cards directly from the company rather than from a rack at a major shop, or buy them online from the firm’s own website. If you believe you have been a victim of gift card fraud, immediately report it to the gift card company and request a refund. You should also report this to the police and the Federal Trade Commission.
