New York man pleads guilty in Rhode Island to role in fraud scheme targeting older victims
Xuehai Sun, 38, of Flushing, New York, admitted sending couriers to collect cash and gold from victims who were tricked by fake tech-support and government warnings, federal prosecutors said.
A Flushing, New York, man has pleaded guilty in federal court in Rhode Island to conspiracy to commit wire fraud for his role in a transnational scheme that targeted older people across the United States and Canada, the U.S. attorney's office in Rhode Island said Thursday.
Xuehai Sun, 38, entered the plea Sept. 30 before U.S. District Judge Mary S. McElroy and is scheduled to be sentenced Jan. 6, 2027. The charge carries up to 20 years in prison.
According to prosecutors, members of the conspiracy sent pop-up messages to seniors' computers that were made to look as if they came from legitimate technology companies. The messages falsely warned that the computers had been hacked, that bank accounts had been compromised or that the victims were under investigation.
Victims were told to call a "live agent" who claimed to be able to protect their money, prosecutors said. Over a series of calls, they were passed to other members of the scheme posing as representatives of financial institutions or government agencies, including the Federal Trade Commission and the Federal Reserve Bank. Victims were then persuaded to send money by wire transfer or cryptocurrency, or to withdraw cash to buy gold bars, believing it was going to accounts controlled by the government. Instead, it went to people involved in the fraud, prosecutors said.
Sun admitted that he sent couriers who worked for him to pick up cash and gold from victims whose names and information were supplied by co-conspirators, knowing the money and gold had been obtained through lies, according to prosecutors. He also admitted communicating with others in the scheme about dispatching couriers, moving the cash and gold, the amounts owed to conspiracy members and converting gold to cash.
Investigators have identified about 300 victims of the group in at least 37 states, including Rhode Island, prosecutors said. Known losses exceed $5 million, and investigators have found an additional $16 million in suspected fraud proceeds laundered through a related account.
Sun was arrested in New York and first appeared in federal court there before the case was transferred to Rhode Island.
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