A Chinese national, Xiao Kun Cheung, has been indicted for his involvement in a scheme that defrauded senior citizens of over $1 million across multiple states. U.S. Attorney Jill E. Steinberg from the Southern District of Georgia announced the charges, which include conspiracy to commit wire fraud, wire fraud, receiving extortion proceeds, and possession of controlled substances. If convicted, Cheung faces up to 20 years in prison and significant financial penalties.
“This indictment uncovers a financially devastating scheme that targeted seniors up to 92 years old. It represents just a fraction of the multitude of victims of elder fraud each year in the United States,” said U.S. Attorney Steinberg. “With our law enforcement partners, we are committed to protecting vulnerable citizens from the predation of scam artists.”
The indictment alleges that Cheung was part of a conspiracy targeting elderly victims in cities such as Savannah and Pooler in Georgia; Naples in Florida; and Cleveland in Tennessee. The scheme involved contacting seniors via phone calls or computer pop-up messages with false claims about compromised computers or financial accounts.
The conspirators convinced the victims to withdraw money, purchase gift cards, or buy gold bars for delivery to a conspirator under the guise of safekeeping by a government agency. Cheung was apprehended in March while attempting to collect approximately $132,000 in gold bars from a victim in Pooler.
Court documents reveal that Cheung is a previously deported Chinese national illegally residing in the United States and is currently held in federal custody awaiting further proceedings.
According to the FBI Internet Crime Complaint Center (IC3), individuals over 60 were the largest age group targeted by fraudsters in 2023, with losses exceeding $3.5 billion—a nearly 11 percent increase from 2022. In Georgia alone, senior victims lost more than $92 million.
Common scams targeting older adults include government imposter frauds, tech support scams, and romance scams. The Department of Justice Elder Justice Initiative advises potential victims and their caregivers on precautions against these scams.
Those who suspect they have been victimized by elder fraud are encouraged to contact local authorities or reach out to the Internet Crime Complaint Center’s Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311). Educational resources on elder fraud can be found online at https://www.justice.gov/elderjustice.
The investigation is being conducted by the FBI with assistance from the Pooler Police Department and prosecuted by Assistant U.S. Attorneys Darron J. Hubbard and Matthew A. Josephson for the Southern District of Georgia.