Five people charged in $20 million fraud and theft scheme targeting New York hardware stores

The Justice Department on Wednesday announced five people have been charged in a massive $20 million fraud and theft scheme that targeted hardware and home improvement stores in New York City. 

The five people, who were arrested Wednesday morning, have been charged with conspiracy to commit wire fraud, conspiracy to commit bank fraud, bank fraud, access device fraud and conspiracy to commit money laundering. 

The charges are related to an alleged two-year scheme, spanning from 2023 through 2025, to acquire and resell over $20 million in building and construction materials, and appliances from New York City home improvement and hardware stores.

“For these defendants, the tools of their trade were not hammers and nails, but fraud and deception," United States Attorney for the Eastern District of New York Joseph Nocella said in a statement. "They enriched themselves by targeting programs designed for hard working consumers and small businesses to buy materials for construction and home improvement. Today’s arrests serve as a warning to those who try to profit from retail fraud: crime doesn’t pay.”

The defendants have been identified as 44-year-old Kai Xu, 56-year-old Zhi Bin An, 39-year-old  Xiang Chen, 35-year-old Songhak Lee and 30-year-old Kang Zhang. 

If convicted, the defendants face up to 30 years in prison.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.