Two men accused of posing as federal agents were arrested after allegedly trying to scam an 85-year-old Washington, D.C., man into handing over more than $200,000 in gold bars, police said Friday.
The Metropolitan Police Department said Chu Lin, 50, of Fresh Meadows, New York, and Xiean Cheng, 42, of Cornelius, North Carolina, were arrested after allegedly showing up at the victim’s home to collect the gold.
Both men were charged with second-degree financial fraud.
According to police, the scheme began July 8 when scammers contacted the victim by email and later by phone while posing as federal agents.
The alleged con artists claimed urgent action was needed to protect his assets.
The scammers allegedly told the victim that funds in his bank account were “in jeopardy of being lost” unless he secured the money by purchasing gold bars and turning them over.
The victim initially believed the threat was genuine and moved forward with the plan.
Believing the scheme was legitimate, the victim attempted to purchase more than $200,000 worth of gold bars before the gold dealer recognized the apparent scam and alerted him, police said.
The precious metals dealer’s skepticism stopped the fraud in its tracks.
The gold dealer then alerted MPD’s Financial and Cyber Crimes Unit and the FBI, according to authorities.
Law enforcement moved swiftly to intercept the suspects before they could claim their prize.
When the alleged scammers later arrived at the victim’s home to retrieve the gold bars, officers with MPD’s Violent Crime Suppression Division arrested Lin and Cheng, police said.
The FBI noted such schemes have become increasingly common in recent years.
The FBI has separately warned that criminals are increasingly using government impersonation schemes to persuade victims, particularly older adults, to hand over cash or gold.
In the viral moment that has sparked widespread concern about elder fraud, an 85-year-old Washington, D.C., resident received emails and phone calls beginning July 8 from scammers claiming to be federal agents. The con artists told him his bank account was “in jeopardy of being lost” unless he secured his funds by purchasing gold bars and handing them over to the alleged agents. Trusting the false claim and the official-sounding language, the victim proceeded to attempt buying over $200,000 in precious metals. It was only when he went to a gold dealer to complete the transaction that the fraud was exposed. The dealer recognized the red flags and alerted authorities immediately.
The pair’s arrest represents a rare success story in elder fraud cases, where law enforcement caught perpetrators red-handed upon their arrival to collect the promised goods.
Officials say there may be more victims.