Two men were arrested after allegedly posing as federal agents and attempting to collect more than $200,000 in gold bars from an 85-year-old Washington, D.C., man. Police said the victim was contacted by email and phone and told his bank funds were at risk. The alleged scheme was interrupted after a gold dealer recognized the warning signs and contacted authorities. Chu Lin and Xiean Cheng were each charged with second-degree financial fraud.
Investigators said the arrests followed a coordinated response involving the Metropolitan Police Department and the FBI. The suspects were taken into custody when they allegedly arrived at the victim’s home to retrieve the gold.
| 1) | The alleged federal-agent impersonation scheme |
| 2) | The victim was directed to buy gold |
| 3) | A dealer’s warning brought authorities in |
| 4) | Suspects arrested at the victim’s home |
| 5) | Charges and ongoing investigation |
The alleged federal-agent impersonation scheme
Police said the alleged scheme began July 8, when fraudsters contacted an 85-year-old Washington, D.C., resident by email and later by telephone. The callers allegedly claimed to be federal agents and told him that money in his bank account was in danger of being lost. They then directed him to protect the funds by converting them into gold bars and surrendering the gold.
The alleged impersonation was designed to make the demand appear official and urgent. Authorities said the victim believed the communications were legitimate and followed the instructions before the transaction was stopped.
The victim was directed to buy gold
Following the alleged instructions, the victim attempted to purchase more than $200,000 worth of gold bars. The transaction took place as part of the alleged effort to move his money out of the banking system and into a form that could be collected in person.
Police said the victim was not initially aware that he was being deceived. Authorities described the intended loss as exceeding $200,000, although the alleged scam was disrupted before the suspects could obtain the gold.
“Thinking that the scam was legitimate, the victim attempted to purchase over $200,000 worth of gold bars and was alerted by the gold dealer that he was being scammed.”
A dealer’s warning brought authorities in
The gold dealer recognized that the purchase appeared suspicious and warned the victim before the gold could be handed over. The dealer then contacted the Metropolitan Police Department’s Financial and Cyber Crimes Unit and the FBI, according to authorities.
That alert gave investigators an opportunity to identify the alleged collection effort and coordinate a response. The case shows how financial professionals can help interrupt fraud when a customer is pressured to make an unusually large purchase involving precious metals.
Suspects arrested at the victim’s home
Police identified the suspects as Chu Lin, 50, of Fresh Meadows, New York, and Xiean Cheng, 42, of Cornelius, North Carolina. Investigators said both men allegedly went to the victim’s home to collect the gold bars after the earlier communications and attempted purchase.
Officers from the Metropolitan Police Department’s Violent Crime Suppression Division arrested Lin and Cheng when they arrived, police said. The arrests occurred after the gold dealer’s report prompted an investigation involving local officers and federal agents.
Charges and ongoing investigation
Lin and Cheng were charged with second-degree financial fraud. The charge follows allegations that they participated in an effort to obtain valuable property through deception and by falsely presenting themselves as federal agents.
Authorities have not reported that the suspects successfully received the gold. The available account identifies the communications, attempted purchase, dealer notification and arrests, while the investigation into the wider alleged scheme continues.
| No. | Key Point |
|---|---|
| 1 | An 85-year-old Washington, D.C., man was allegedly targeted by callers posing as federal agents. |
| 2 | The victim attempted to purchase more than $200,000 in gold bars. |
| 3 | A gold dealer alerted police and the FBI, leading to the suspects’ arrests. |
Summary
The alleged fraud was stopped before more than $200,000 in gold could be collected from the elderly victim. Police say the case involved impersonation of federal agents, pressure to convert bank funds into gold and an attempted in-person pickup. The dealer’s intervention led to a joint investigation and the arrests of two men, who now face second-degree financial fraud charges.
Frequently Asked Questions
Who was arrested?
Chu Lin, 50, and Xiean Cheng, 42, were arrested, according to police. They were each charged with second-degree financial fraud.
Who was targeted in the alleged scam?
The alleged victim was an 85-year-old man living in Washington, D.C. Police said he was contacted by people posing as federal agents.
How was the alleged scam interrupted?
A gold dealer recognized the apparent fraud while the victim was attempting to purchase more than $200,000 in gold bars. The dealer alerted the Metropolitan Police Department and the FBI before the gold was collected.