United States Attorney David Metcalf has announced the arrest and indictment of three individuals from Queens, New York. Fanchao Zeng, 33, Zhongzhou Lin, 26, and Yanping Li, 32, face charges related to a scheme aimed at defrauding bank customers through identity theft and bank fraud.
The indictment outlines that the defendants and their associates used stolen bank account details and fake driver’s licenses to access home equity lines of credit (HELOC) from unsuspecting bank customers. They allegedly transferred funds from these HELOCs into accounts they controlled for withdrawal.
According to the indictment, Zeng and Lin targeted bank customers with existing HELOCs. The accused trio submitted fraudulent address change requests under the victims’ names via the Pennsylvania Department of Transportation’s website. They then requested replacement driver’s licenses sent to addresses accessible by them.
Subsequently, Zeng, Lin, Li, and their co-conspirators prepared to steal available HELOC funds by transferring them online or creating fake business accounts in the victims’ names. Transfers were also made through phone requests or in-person at banks.
The defendants allegedly visited bank branches using “runners” who shared ethnicity with account holders to withdraw funds using fraudulent licenses. Li was reportedly involved as a runner on several occasions. Withdrawals were made in cash or via official checks later cashed at casinos to obscure their activities.
If convicted, Zeng could face up to 131 years in prison along with fines totaling $5 million. Lin faces a potential sentence of 159 years and fines amounting to $5.75 million if found guilty. Li could be sentenced up to 101 years with fines reaching $4.25 million upon conviction.
The Federal Bureau of Investigation conducted the investigation while Assistant United States Attorney Eric D. Gill is handling prosecution duties.
It is important to note that these charges are allegations at this stage; all defendants are presumed innocent until proven guilty in court.
