Gift card scam linked to California crime ring nets Chinese man 4 to 6 years in prison
COSHOCTON − A Chinese immigrant determined to be in the U.S. illegally was sentenced Thursday in Coshocton County Common Pleas Court for participating in a gift card scam with an organized crime ring in California.
Ming Xue, 35, of Hunan, Fujian, was indicted in January on 308 counts of counterfeiting, all fourth-degree felonies. Plus, one charge engaging in a pattern of corrupt activity, a second-degree felony.
The Coshocton County Prosecutor's Office, as part of plea negotiations, agreed to drop counts 300 to 308 of the indictment in exchange for guilty pleas to 299 of the counterfeiting charges and the pattern of corrupt activity charge. The state agreed to not oppose a pre-sentence investigation and to take no position on sentencing or judicial release. Xue entered guilty pleas to the charges on April 17.
Attorney Thomas Kollin of Beavercreek requested all of the fourth-degree felony charges be merged into the second-degree felony charge, which was granted by Judge Robert Batchelor.
Xue received an indefinite term of four to six6 years in prison for engaging in a patter of corrupt activity. He was granted 164 days of credit for local incarceration and will have to serve 18 months to 3 years of post release control. Xue was also ordered to pay restitution of $161.39 to InComm Financial Services for the physical cards stolen.
InComm submitted a victim impact statement via its counsel, which was read by Coshocton County Prosecutor Ben Hall. It's a financial technology company that produces and services pre-paid products. In the statement, InComm noted the case damaged its reputation with consumers and caused the company to devote resources to investigating the crime on their end and make proper refunds.
"Despite the investment of InComm in time and money into fraud prevention, no pre-paid product is entirely impervious to criminal activity," Hall read from the statement. "The inability to access gift card funds at the time of his or her choice may be anything from a nuisance to a real hardship."
Arrest at Coshocton Walmart
Xue was apprehended by the Coshocton County Sheriff's Office on Dec. 5 at the Coshocton Walmart. Deputies were at the store participating in Shop with a Cop through the Salvation Army Christmas Castle program at the time.
Xue was observed hiding unloaded gift cards on his body and was detained by the store's loss prevention employees. Xue handed over several gift cards from his pockets to officers. Deputies later found Xue's vehicle in the parking lot with the engine running. Deputies noticed several open boxes full of gift cards inside the car. Each of the counterfeiting charges related to an individual gift card found on Xue's person or in his vehicle.
Investigation determined Xue was working with accomplices in California. He would steal unloaded gift cards, alter them and place them back into display racks. When consumers purchased the altered gift cards, accomplices then stole the cash placed on the cards by having the card information. The accomplices in California would then make purchases using the card information, court documents indicated.
Court documents also confirm Xue entered the country in September in California and does not have required documentation to be in the U.S.
What was said in court
Through interpreter Kate Hong, Xue made a statement to the court. He said his home was taken away from him in China and he came to the U.S. with hopes of helping his family back home. He said he was deceived by those he was working with California.
"I am in deep regret. I hope the judge gives leniency and I can go back home to reunite with my family sooner," Hong read from her translation.
Even though prison time was presumed in the case, Kollin argued for probation or a lenient sentence based on Xue having no previous criminal history and accepting responsibility while being remorseful for his actions.
However, Batchelor said a non-prison sentence would not properly protect the public or punish the offender and would demean the seriousness of the offense. Batchelor also noted Xue entering the U.S. illegally and voluntarily joined an organized crime operation. Based on the pre-sentence investigation, Batchelor believed Xue knew what he was doing.
"The defendant knew he was committing crimes when he was stealing the gift cards and then altering the gift cards. The defendant only shows remorse today because he now recognizes the severity of the offense," Batchelor said. "Mr. Xue, knowing he was committing crimes, continued to do so. Further, the evidence obtained by law enforcement officials from Mr. Xue's car, which had been left running in the Walmart parking lot on the day he was arrested, showed Mr. Xue knew the extent and scope of the criminal organization he was part of."
This article originally appeared on Coshocton Tribune: Chinese immigrant receives 4 to 6 years in prison for gift card scam
