Two men have been arrested in Washington, D.C., after allegedly posing as federal agents in an attempt to scam an 85-year-old resident out of more than $200,000 in gold bars. The Metropolitan Police Department identified the suspects as Chu Lin, 50, of Fresh Meadows, New York, and Xiean Cheng, 42, of Cornelius, North Carolina.
Both individuals face charges of second-degree financial fraud. The scheme began on July 8 when the suspects, claiming to be federal agents, contacted the victim via email and then by phone. They allegedly informed the elderly man that the funds in his bank account were at risk of being lost and instructed him to purchase gold bars to secure his money.
Believing the scammers, the victim attempted to purchase over $200,000 worth of gold bars. However, the gold dealer recognized the situation as a potential scam and alerted the authorities. The dealer then contacted the Metropolitan Police Department's Financial and Cyber Crimes Unit and the FBI, according to police reports.
When Lin and Cheng later arrived at the victim's residence to collect the gold bars, officers from the MPD's Violent Crime Suppression Division apprehended them. The FBI reportedly assisted the Metropolitan Police Department in the investigation into the alleged scam.
Colin McDonald, the fraud czar and assistant attorney general for the Fraud Division, has previously highlighted efforts to expose individuals involved in large-scale fraud schemes, noting that their identities are increasingly being brought to public attention.