Chinese National and Ringleader Sentenced to 12.5 Years in $27 Million Multinational Fraud and Money Laundering Scheme Targeting Over 2,000 Seniors

SAN DIEGO - Zhao Wang, aka "Oscar," was sentenced in federal court today to 151 months in prison for leading a $27 million fraud and money laundering scheme targeting approximately 2,000 elderly victims across the United States.

Wang, a Chinese national, was the lead defendant charged in a five-defendant indictment unsealed in 2024. According to public documents, members of the conspiracy operated a series of technical support, bank impersonation and government impersonation, and refund scams targeting elderly victims. Victims received unsolicited phone calls, emails, and pop-up ads directing victims to call a phone number. Unbeknownst to the victims, those phone numbers belonged to India-based scam call centers. Once a victim called the call center, members of the conspiracy used social engineering techniques to build trust with victims. In many instances, the conspirators had victims download commercially available remote desktop software, which the conspirators used to access victims' computers and to carry on the scams.

One of the most frequent scams was a refund scam. In the refund scams, victims were told they were entitled to a small refund, for example, from a retailer for an alleged unauthorized charge. While pretending to process the refund, the victim would be accidentally "over-refunded" money. The conspirators would then instruct the victim to send the alleged over-refunded money through wire transfers or in cash via express mail to members of the conspiracy. In reality, the victims had not been refunded any money and victims were scammed into sending their own money.

Victims were instructed to send the alleged over-refunded money via wire transfers and in bulk cash via express mail packages to members of the conspiracy, including defendant Zhao Wang, in the United States. When a victim was duped into sending bulk cash in the mail, Wang would provide his India-based co-conspirators a fictitious name plus an address of a retail location that could accept express mail packages. Those names and addresses would then be relayed to the victims, who were instructed to express mail the bulk cash. Then, once a victim had sent the cash in the mail, Wang and his co-conspirators would use fake IDs to get the packages of cash sent by the elderly victims.

In sentencing papers, the government argued that Wang oversaw the U.S.-based operation, including co-conspirators who would retrieve victim packages and document themselves retrieving and opening packages and counting the money inside. Agents seized countless such photos and videos from Wang's phone.

Investigators identified over 2,000 elderly victims from throughout the country, including victims in San Diego, who were defrauded and suffered over $27 million in losses over an approximately two-year period between 2021-2023.

At sentencing, the government emphasized that Wang was explicit that his operation was, in his own words, scamming elderly Americans. The following conversation from February 2022 was seized from Wang's cellphone during the investigation:

In publicly filed documents, Wang also admitted that after receiving the fraud proceeds, he and his co-conspirators laundered the money using cryptocurrency back to their foreign-based counterparts.

Wang admitted that typically each day after collecting victim packages, Wang's co-conspirators would deliver the money from the packages to him. Wang would then coordinate with his foreign-based co-conspirators, who would provide a cryptocurrency wallet that Wang would use to transfer cryptocurrency. Wang took upwards of 18 percent of the fraud proceeds and transferred the rest via cryptocurrency to his co-conspirators. Wang also admitted that he laundered the proceeds to promote the fraud scheme by using fraud proceeds to pay co-conspirators and to purchase the fake IDs used in the scheme.

"This sentence recognizes the profound human cost of exploiting trust and treating vulnerable people as opportunities for profit," said U.S. Attorney Adam Gordon.

"Zhao Wang, "Oscar," and his co-conspirators callously scammed more than 2,000 elderly victims throughout the country with a variety of fraud schemes for years," said Special Agent in Charge Mark Remily of the FBI San Diego Field Office. "Today's sentence ensures that Wang, the coordinator perpetrating the multitude of scams, is held accountable for his role. FBI San Diego and our law enforcement partners will continue to aggressively investigate those who think they can prey on our elder population without consequences."

At the sentencing hearing, U.S. District Judge Robert S. Huie called the scope of the fraud "staggering" and called Wang's domestic operation of the scheme "100 percent reprehensible." In finding Wang specifically targeted elderly victims, Judge Huie emphasized, "Their vulnerability was not incidental. It was not coincidence. It was how they were selected. It was how they came to be scammed."

The wife and daughter of an 83-year-old victim spoke at the sentencing hearing today. They said that within months of being scammed, the victim lived with suspicion, distrust and resentment and he soon passed away. Judge Huie commented, "It's really hard to fathom the depth of that harm in somebody's last months on this planet."

This case is being prosecuted by Assistant U.S. Attorney Kevin Mokhtari.

DEFENDANTS

Case Number 24-cr-1317-RSH-01

Zhao Wang, aka "Oscar" Age: 41 Las Vegas, NV

SUMMARY OF CHARGES

Conspiracy to Commit Mail and Wire Fraud - Title 18, U.S.C., Section 1349, 2326

Maximum Penalties: Forty years in prison; $1 million fine

Conspiracy to Launder Monetary Instruments - Title 18, U.S.C., Section 1956(a)(1)(A)(i), 1956(a)(1)(B)(i) and 1956(h)

Maximum Penalties: Twenty years in prison; maximum fine of $500,000 or twice the amount laundered

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Federal Deposit Insurance Corporation - Office of Inspector General

Homeland Security Investigations

San Diego County District Attorney's Office
San Diego County Sheriff's Department

San Diego Police Department

San Diego Elder Justice Task Force

Chino Police Department

Coronado Police Department

Escondido Police Department

Glendora Police Department

Long Beach Police Department

Orange County Sheriff's Department