Four men are facing hundreds of charges after the St. Matthews Police Department uncovered a massive gift card scam linked to an organized crime operation affecting people across the country.
On Saturday, officers discovered thousands of fraudulent gift cards in connection with this scheme. According to Chief Barry Wilkerson, the fake cards are estimated to be worth at least $1 million. The investigation began when a suspect was caught placing tampered gift cards on a rack at a Kroger store in St. Matthews. Surveillance footage from October 19 shows the man spending an extended time in the gift card section, prompting a store employee to alert the police.
The investigation revealed that the suspect was working with three accomplices. All four suspects, identified as Chaoming Lin, Zhiqiang Huang, Huixing Yu, and Tianlong Chen, were arrested on Saturday. Lin and Huang face 999 counts of criminal possession of a forged instrument, while Yu and Chen are charged with criminal possession of a forged instrument, fleeing or evading police, and engaging in organized crime.
The suspects are accused of opening gift cards at major retailers to obtain the serial numbers, then resealing the cards and returning them to the shelves. Once the cards were purchased and activated, they would allegedly steal the funds.
Chief Wilkerson raised concerns about the possible use of the stolen money, saying, “Is it tied to terrorism? I don’t know. That’s why we turn these cases over to federal agencies for a deeper investigation.” The case has now been handed over to the Department of Homeland Security, which classifies it as part of an organized crime scheme involving Chinese nationals. The suspects reportedly targeted stores in New York, Pennsylvania, Ohio, and Kentucky.
The Kentucky Retail Federation has noted a rise in similar incidents across the state over the past year. According to spokesperson Steve McClain, Kentucky’s location, with three major interstates crisscrossing the state, may make it a hotspot for such crimes. The federation is pushing for stricter laws to tackle these crimes and plans to meet with Kentucky Attorney General Russell Coleman to discuss potential legislative action.
Despite the serious nature of the crimes, Chief Wilkerson lamented that the consequences often result in only brief jail sentences, with many cases amended down to expedite the legal process.
In the meantime, police are advising consumers to remain cautious when purchasing gift cards, offering the following tips:
- Inspect the packaging for signs of tampering.
- Keep the activation receipt and share it with the recipient.
- Purchase gift cards directly from the company or via its official website.
- If you suspect a gift card scam, report it to the company, the police, and the Federal Trade Commission.
This case highlights the growing issue of gift card fraud and the need for heightened vigilance among shoppers.