Scam Involved Suspects Buying Home Improvement Products Using Fraudulently Obtained Gift Cards, Then Reselling Them to Local Contractors
By Hank Russell
Seven people have been charged with money laundering and conspiracy charges after a 15-month investigation into an organized scheme to use fraudulently obtained gift cards of national home improvement stores at dozens of retail locations in Nassau County and across New York State, then resell the items to local businesses in New York City.
DA Donnelly said, NCDA, together with the Nassau County Police Department and Home Depot and Lowe’s investigators, conducted the investigation into a money laundering operation that allegedly laundered approximately $20 million using Home Depot and Lowe’s gift cards between January 3, 2023, and March 4, 2025.
“This sophisticated $20 million scheme laundered the funds from fraudulently obtained Home Depot and Lowe’s gift cards through retail locations in New York State, and other stores throughout the Northeast,” said Donnelly. “These seven defendants used the stolen funds, obtained through a computer scam that targeted more than 1800 victims in 45 states, to buy copper pipes, electrical wire, and other equipment for resale to local home improvement businesses in New York City.”
According to the charges, in 2023, Home Depot investigators alerted District Attorney Squad Detectives from the Nassau County Police Department after they noticed Home Depot gift cards were being purchased and redeemed the same day or the following day and used to buy merchandise including copper pipes, electrical wire, and hot water heaters. More than $3 million of the gift certificates were redeemed at retail stores in Nassau County.
As the investigation continued, a complex computer-based scam was uncovered, utilizing spyware pop-ups and scam text messages targeting victims across the country. The scam deceived victims into believing that their computer, identities, financial information, or other data had been compromised and instructed them to call a phone number. When victims called the number, they were told to buy Home Depot and Lowe’s gift cards to offset charges or to aid in law enforcement investigations.
The investigation identified more than 1,800 victims of the scheme, spanning 45 states, including dozens of victims in the New York area. The defendants allegedly obtained the Home Depot and Lowe’s gift cards purchased in the computer scam from the perpetrators of the fraud and laundered the money.
The investigation into the computer scam is ongoing.
Surveillance and other records show the defendants in various Home Depot and Lowe’s locations throughout New York, spending hours at a time purchasing copper pipes, pallets of wire, and hot water heaters. In total, the defendants were allegedly involved in more than 6,000 transactions on more than 400 different dates at more than 80 Home Depot or Lowe’s locations in New York State. The defendants then allegedly stored the merchandise in several buildings in Flushing, Bayside, Fresh Meadows and Brooklyn and later sold the items to various plumbing and home improvement businesses in Queens and Brooklyn.
Search warrants executed on March 4, 2025, recovered 12 box trucks worth of product, as well as approximately $100,000 in cash, several vehicles with merchandise still inside, and high-end jewelry and handbags.
The following defendants were arraigned on March 6 before Judge Lisa A. LoCurto on charges of Money Laundering in the Second Degree (a Class C felony) and Conspiracy in the Fourth Degree (a Class E felony):
- Sky Lin, 36, of Flushing
- Lifa Wang, 49, of Flushing
- Hai Tao Liu, 38, of Staten Island
- Yu Lin, 35, of Fresh Meadows
- Jie Lin, 32, of Flushing
- Lixi Wang, 40, of Flushing
- Jia Bin Chen, 39, of Fresh Meadows
If convicted, the defendants face up to 5 to 15 years in prison. Six defendants are due back in court on March 14, 2025. Jie Lin is due back in court on March 7, 2025.
The NCPD worked on the case with the assistance and cooperation of The Home Depot, Lowe’s and the Federal Bureau of Investigation’s New York and Pennsylvania offices.
“The men and women of the Nassau County Police Department work tirelessly every day to protect our residents from those who engage in fraud and scams like this one which target innocent people,” said Police Commissioner Patrick Ryder. “The detectives assigned to our District Attorney Squad are the best of the best when it comes to detecting these schemes and working with our great partners in the District Attorney’s Office as well as the FBI and other federal law enforcement agencies to bring these fraudsters to justice. If any resident of Nassau County suspects they are being targeted for computer fraud, they should call 911 to report it and we will be there to investigate thoroughly.”
“The Home Depot applauds our law enforcement partners for their efforts in fighting organized retail crime (ORC) and for their work on this case specifically. ORC continues to be a challenge for retailers and consumers and our teams are committed to addressing this issue,” said Scott Glenn, The Home Depot’s vice president of asset protection.
“Our tremendous partnership with the Nassau County Police Department, The Home Depot and Lowe’s was critical to pulling at the threads to unravel this criminal conspiracy,” Donnelly said. “Together, we will continue to break up these organizations, protect our communities, and ensure that businesses thrive in Nassau County.”