Man charged with running scams, taking thousands from elderly victims in Northeast Ohio
A federal grand jury has returned a 10-count indictment charging two men with defrauding elderly victims in Northeast Ohio out of thousands of dollars. The victims affected reside in Cleveland Heights, Willoughby, Canton, and Warren, according to the Department of Justice.
According to a recently unsealed indictment, Jinrong Shi, 28, of New York, New York, and Jiyang Zhong, 27, a Chinese national of Little Neck, New York, were part of a criminal network that targeted senior citizens in Ohio, and elsewhere, with either a “grandparent” or “tech support” scam in May and June 2024.
The department said in tech support scams, victims are led to believe that their electronic devices, or online account, has been compromised. Unsuspecting victims are then persuaded to pay for assistance to resolve the fabricated issues.
In grandparent scams, perpetrators impersonate law enforcement, or other authority figures, to convince elderly victims that their grandchildren are in trouble with the law. The victims are told that they must provide immediate financial assistance to help their grandchild out of the legal bind.
Once the scam victims were persuaded to withdraw cash from their bank accounts, Shi and Zhong collaborated with a network of co-conspirators to collect it. The defendants used “fraud callers” to speak with victims and gather their addresses and other information. These details were then given to “fraud couriers” who were tasked with meeting victims to pick up cash, or other items of value, at or near their homes, according to the department.
In an effort to further gain victims’ trust, the fraudulent callers would give them a password and told that a courier they would meet would provide this same password to confirm the validity of the transaction. In other instances, victims were instructed to mail cash to locations which the members of the conspiracy controlled. In total, more than $201,000 was taken from victims in Ohio.
The ill-gotten proceeds from these fraudulent activities were allegedly laundered across state lines through various methods. In attempts to conceal the origins of the funds, conspirators also routed proceeds through cryptocurrency account holders based in China.
The department said Shi has been charged with conspiracy to commit wire and mail fraud, wire fraud, mail fraud, money laundering conspiracy, and concealment of money laundering, and faces up to 20 years in prison.
Zhong has been charged with conspiracy to commit wire and mail fraud, wire fraud, mail fraud, and money laundering conspiracy, and faces up to 20 years in prison.
If convicted, each defendant’s sentence will be determined by the Court after a review of factors unique to this case, including each defendant’s prior criminal record, if any, their roles in the offense, and the characteristics of the violation. In all cases, the sentences will not exceed the statutory maximum, and in most cases, it will be less than the maximum, according to the department.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it is the government’s burden to prove guilt beyond a reasonable doubt.
To bring awareness to the financial abuse of senior citizens, the USAO recently issued an announcement warning of scams that target the elderly. Click here to read more about Elder Abuse Awareness Month.
To submit a report of suspected elder financial abuse, visit tips.fbi.gov/home or justice.gov/elderjustice/financial-exploitation.